Earnings To Watch: Skyworks Solutions (SWKS) Reports Q3 Results Tomorrow

Kayode Omotosho /
2022/08/03 4:14 am EDT

Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter Skyworks Solutions reported revenues of $1.33 billion, up 13.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Is Skyworks Solutions buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Skyworks Solutions's revenue to grow 9.76% year on year to $1.22 billion, slowing down from the 51.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.35 per share.

Skyworks Solutions Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.42%.

Looking at Skyworks Solutions's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Monolithic Power Systems delivered top-line growth of 57.1% year on year, beating analyst estimates by 7.06% and NXP Semiconductors reported revenues up 27.5% year on year, exceeding estimates by 1.43%. Monolithic Power Systems traded up 3.96% on the results, and NXP Semiconductors traded flat on the results. Read our full analysis of Monolithic Power Systems's results here and NXP Semiconductors's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 19.9% over the last month. Skyworks Solutions is up 14.6% during the same time, and is heading into the earnings with analyst price target of $138.9, compared to share price of $107.6.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.