Skyworks (SWKS) to Report Q2 Earnings: What's in the Cards?
Skyworks Solutions SWKS is slated to release second-quarter fiscal 2022 results on May 3.
For the second quarter, revenues are expected in the range of $1.30 billion to $1.360 billion, indicating growth of 13.5% from the figure reported in the year-ago quarter but a decline of 12% sequentially.
Non-GAAP earnings are anticipated to be $2.62 per share at the mid-point of this revenue guidance, indicating growth of 11% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.33 billion, which suggests 13.44% growth from the year-ago quarter’s levels.
The consensus mark for earnings has declined by a penny in the past 30 days to $2.62 per share, suggesting 10.55% growth from the figure 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 all of the trailing four quarters, delivering an earnings surprise of 1.58%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q2 Performance
Robust uptake of 5G and Wi-Fi 6 solutions is likely to have driven Skyworks’ top line in the fiscal second quarter. Demand is being driven by growing need for high-speed connectivity amid the pandemic-induced surge in hybrid work environment, video-streaming and web-based learning trends.
Acquisition of the Infrastructure & Automotive business of Silicon Laboratories has expanded Skyworks’ market opportunity, and is likely to favor the company’s top line in the to-be-reported quarter.
Accelerated 5G deployment, globally, is a tailwind for Skyworks. Emerging use cases of 5G in end-markets like automotive and industrial IoT, and technologies like virtual reality, gaming, and telemedicine, are driving demand for Skyworks’ 5G solutions.
Moreover, healthy demand for the iPhone 13 might have favored revenue numbers in the quarter under review.
Momentum for Skyworks’ bulk acoustic wave ("BAW") filters, particularly in mobile and broad markets, is likely to have driven the top-line performance. The company has been witnessing significant design wins for BAW-enabled devices.
However, supply chain disruptions, COVID lockdown in China and negative impact of the Russia-Ukraine conflict on European sales are anticipated to have limited Skyworks' top-line growth and margin expansion in the to-be-reported quarter.
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.
Skyworks has an Earnings ESP of +0.67% and carries 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.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Camtek CAMT has an Earnings ESP of +1.73% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Camtek shares have underperformed the Zacks Computer & Technology sector year to date. CAMT shares are down 33.1% compared with sector’s decline of 20.4%. The company is set to report first-quarter 2022 on May 12, 2022.
CDW CDW has an Earnings ESP of +0.17% and carries a Zacks Rank of 2, at present.
CDW shares are down 17.7% year to date. The company is set to report first-quarter 2022 results on May 4.
Fabrinet FN has an Earnings ESP of +0.87% and a Zacks Rank #2.
Fabrinet shares are down 15% year to date. FN is set to report third-quarter fiscal 2022 results on May 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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