Skyworks (SWKS) to Report Q4 Earnings: What's in the Cards?
Skyworks Solutions SWKS is slated to release its fourth-quarter fiscal 2022 results on Nov 3.
For the fiscal fourth quarter, revenues are expected to be in the range of $1.375-$1.425 billion, indicating growth of 14% from the figure reported in the previous quarter.
Non-GAAP earnings are anticipated to be $2.90 per share at the mid-point of this revenue guidance, indicating growth of 19% from the figure reported in the previous quarter.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.40 billion, suggesting 7.07% growth from the year-ago quarter’s levels.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
The consensus mark for earnings has been steady at $2.91 per share in the past 30 days, suggesting 11.07% growth from the figure reported in the year-ago quarter.
Skyworks’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 1.97%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q4 Performance
Robust uptake of 5G, Wi-Fi 6 and 6E solutions is likely to have driven Skyworks’ top line in the fiscal fourth quarter. Demand has been driven by a growing need for high-speed connectivity amid the pandemic-induced surge in hybrid work environments, video-streaming and web-based learning trends.
Accelerated 5G deployment globally has been 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 expected to have driven demand for Skyworks’ 5G solutions.
Moreover, 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, the COVID lockdown in China and the 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. But that’s not the case here.
Skyworks has an Earnings ESP of 0.00% 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.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Airbnb ABNB has an Earnings ESP of +0.81% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbnb shares are down 35.8% year to date. ABNB is set to report its third-quarter 2022 results on Nov 1.
ZoomInfo ZI has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 30.6% on a year-to-date basis. ZI is set to report its third-quarter 2022 results on Nov 1.
Fortinet FTNT has an Earnings ESP of +2.44% and a Zacks Rank #2.
Fortinet shares are down 20.4% year to date. FTNT is set to report its third-quarter 2022 results on Nov 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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