Skyworks Solutions (SWKS) Q1 Earnings Report Preview: What To Look For

Anthony Lee /
2023/02/06 2:38 am EST

Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) will be reporting earnings today after market close. Here's what you need to know.

Last quarter Skyworks Solutions reported revenues of $1.4 billion, up 7.32% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a beat on the bottom line but underwhelming revenue guidance for the next quarter.

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 decline 12.3% year on year to $1.32 billion, a further deceleration on the 0.02% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.60 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 6.04%.

Looking at Skyworks Solutions's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. MACOM Technology delivered top-line growth of 12.8% year on year, beating analyst estimates by 0.29% and Microchip Technology reported revenues up 23.4% year on year, exceeding estimates by 0.77%. MACOM Technology traded down 1.91% on the results, Microchip Technology was down 2.14%. Read our full analysis of MACOM Technology's results here and Microchip Technology's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 15.1% over the last month. Skyworks Solutions is up 16.6% during the same time, and is heading into the earnings with analyst price target of $111.9, compared to share price of $112.54.

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