Skyworks Solutions SWKS is slated to release third-quarter fiscal 2024 results on Jul 30.
For the third quarter of fiscal 2024, the company currently expects revenues to be $900 million plus or minus 2%. Earnings are expected to be $1.21 per share at the mid-point of this revenue guidance.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $900.62 million, indicating a 15.92% year-over-year decline.
The consensus mark for earnings has remained steady at $1.21 per share in the past 30 days. The projection indicates a 30.06% decline from that reported in the year-ago quarter.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 2.84%.
Let’s see how things might have shaped up prior to the announcement.
Factors Likely to Have Influenced Q3 Performance
Skyworks’ fiscal third-quarter performance is expected to have benefited from its diversified portfolio, evidenced by design wins across the infrastructure, automotive and emerging IoT sectors.
SWKS expects modest sequential growth in broad markets. Inventory levels appear to be normalizing in certain end markets, which is expected to have contributed positively to this segment's performance in the to-be-reported quarter.
Despite near-term headwinds, Skyworks sees long-term growth opportunities in its automotive business. The increasing focus on software-defined vehicles, connected cars and in-cabin user experiences is expected to have been generating higher levels of radio complexity, creating demand for Skyworks’ advanced RF solutions.
Skyworks remains bullish on AI workloads, which are expected to have driven upgrades to Ethernet switches and optical modules. These are seen as positive long-term drivers for its advanced precision timing solutions. The company’s timing portfolio targets next-generation 800 gigs and 1.6 terabyte Ethernet switches in optical modules on the back of its robust AI infrastructure.
SWKS’ robust uptake of Wi-Fi 6E and 7 solutions, owing to the growing demand for its high-speed connectivity, video-streaming and web-based learning trends, is expected to have driven Skyworks’ top line in the fiscal third quarter.
However, challenges in wireless infrastructure and traditional data center end-markets are expected to have hurt SWKS’ top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.
Skyworks has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +0.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have gained 33.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple AAPL has an Earnings ESP of +3.23% and a Zacks Rank of #2 at present.
Apple’s shares have gained 13% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions CTSH has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 3.1% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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