What Happened:
Shares of wireless chips maker Skyworks Solutions (NASDAQ: SWKS) fell 7.91% in the after-market session after the company reported second-quarter results that missed analysts' revenue, free cash flow, and earnings per share (EPS) estimates. Gross margin also declined, and inventory levels rose. In addition, revenue and EPS guidance for the next quarter came in below expectations. Like many peers that have reported earnings this season, management cited a challenging macro environment, adding to the uncertainty in financial projections for the coming quarters. Overall, it was a weaker quarter for the company.
What is the market telling us:
Skyworks Solutions's shares are somewhat volatile and over the last year have had 12 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Skyworks Solutions is up 2.49% since the beginning of the year, but at $92.80 per share it is still trading 24.5% below its 52-week high of $122.97 from February 2023. Investors who bought $1,000 worth of Skyworks Solutions's shares 5 years ago would now be looking at an investment worth $970.70.
Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it's free.