Yahoo Finance US$115 - That's What Analysts Think Skyworks Solutions, Inc. (NASDAQ:SWKS) Is Worth After These Results
Skyworks Solutions, Inc. (NASDAQ:SWKS) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to US$108 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$906m and statutory earnings per share of US$0.75. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Skyworks Solutions after the latest results.
Check out our latest analysis for Skyworks Solutions
Taking into account the latest results, the 26 analysts covering Skyworks Solutions provided consensus estimates of US$4.24b revenue in 2025, which would reflect a small 3.1% decline over the past 12 months. Statutory earnings per share are forecast to reduce 8.3% to US$4.48 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.22b and earnings per share (EPS) of US$4.64 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Despite cutting their earnings forecasts,the analysts have lifted their price target 8.7% to US$115, suggesting that these impacts are not expected to weigh on the stock's value in the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Skyworks Solutions analyst has a price target of US$140 per share, while the most pessimistic values it at US$83.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.5% by the end of 2025. This indicates a significant reduction from annual growth of 8.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Skyworks Solutions is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Skyworks Solutions. Long-term earnings power is much more important than next year's profits. We have forecasts for Skyworks Solutions going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Skyworks Solutions that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
