Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) will be announcing earnings results today after market hours. Here's what to look for.
Last quarter Skyworks Solutions reported revenues of $1.33 billion, down 12% year on year, in line with analyst expectations. It was a weaker quarter for the company, with 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 decline 13.6% year on year to $1.15 billion, a further deceleration on the 14% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.03 per share.
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 0.83%.
Looking at Skyworks Solutions's peers in the analog semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ON Semiconductor delivered top-line growth of 0.76% year on year, beating analyst estimates by 1.79% and Impinj reported revenues up 61.6% year on year, exceeding estimates by 2.76%. ON Semiconductor traded up 4.48% on the results, Impinj was down 20%. Read our full analysis of ON Semiconductor's results here and Impinj's results here.
Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 6.34% over the last month. Skyworks Solutions is down 6.86% during the same time, and is heading into the earnings with analyst price target of $129.2, compared to share price of $104.12.
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The author has no position in any of the stocks mentioned.