Skyworks (SWKS) to Report Q1 Earnings: What's in the Cards?
Skyworks Solutions SWKS is slated to release first-quarter fiscal 2024 results on Jan 30.
For the fiscal first quarter, revenues are expected between $1.175 billion and $1.225 billion.
Non-GAAP earnings are anticipated to be $1.95 per share at the mid-point of this guidance.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.20 billion, indicating a 9.44% year-over-year decline.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
The consensus mark for earnings has remained steady at $1.95 per share in the past 30 days. The projection indicates a 24.71% decline from that reported in the year-ago quarter.
Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 2.21%.
Let’s see how things might have shaped up prior to the announcement.
Factors Likely to Have Influenced Q1 Performance
Skyworks' fiscal first-quarter performance is expected to have benefited from the improved demand for smartphones. The company is poised to benefit from its position in the global smartphone market, presenting a significant growth opportunity.
According to Canalys' latest research findings, global smartphone shipments witnessed 8% year-over-year growth in the fourth quarter of 2023, reaching a total of 320 million units.
The company is expected to have benefited from 5G design wins for premium Android smartphones, securing partnerships with major players like Google and Samsung. This positions Skyworks to capitalize on the ongoing adoption of high-performance solutions by key customers.
Skyworks is expected to have benefited from the rapid expansion of IoT, the electrification of vehicles and the high-speed connectivity for AI-enabled data-intensive infrastructure in cloud applications.
SWKS' robust uptake of Wi-Fi 6 and 6E solutions is expected to have driven Skyworks’ top line in the fiscal first quarter. A growing need for high-speed connectivity has driven demand amid the pandemic-induced surge in hybrid work environments, video-streaming and web-based learning trends.
However, a challenging macroeconomic environment is expected to have hurt Skyworks’ top-line growth rate in the to-be-reported quarter. Additionally, stiff competition has been a headwind.
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 case here.
Skyworks has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) 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 this reporting cycle.
Meta Platform META has an Earnings ESP of +1.46% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have risen 0.2% in the past six months.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilio is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have risen 18.7% in the past six months.
Bill Holdings BILL has an Earnings ESP of +6.17% and a Zacks Rank #3 at present.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have lost 38.4% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
