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

Kayode Omotosho /
2023/08/06 7:24 am EDT

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

Last quarter Skyworks Solutions reported revenues of $1.15 billion, down 13.7% year on year, missing analyst expectations by 0.05%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

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This quarter analysts are expecting Skyworks Solutions's revenue to decline 12.9% year on year to $1.07 billion, a deceleration on the 10.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.67 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.61%.

Looking at Skyworks Solutions's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ON Semiconductor delivered top-line growth of 0.45% year on year, beating analyst estimates by 3.66%, and Lattice Semiconductor reported revenues up 17.8% year on year, exceeding estimates by 1.47%. ON Semiconductor traded up 5.56% on the results, Lattice Semiconductor was down 1.16%. Read our full analysis of ON Semiconductor's results here and Lattice Semiconductor's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.49% over the last month. Skyworks Solutions is down 3.38% during the same time, and is heading into the earnings with analysts' average price target of $120.97, compared to share price of $108.44.

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