Skyworks (SWKS) to Report Q4 Earnings: What's in the Cards?
Skyworks Solutions SWKS is slated to release its fourth-quarter fiscal 2023 results on Nov 2.
For the fiscal fourth quarter, revenues are expected in the range of $1.19-$1.24 billion.
Non-GAAP earnings are anticipated to be $2.10 per share at the mid-point of this revenue guidance.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.22 billion, suggesting a 13.6% year-over-year decrease.
The consensus mark for earnings has been steady at $2.10 per share in the past 30 days, suggesting a 30.46% decline 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.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q4 Performance
Skyworks’ fiscal fourth-quarter results are expected to reflect improved demand for Android-based devices. The launch of the iPhone 15 is expected to have benefited top-line growth.
However, the challenging macroeconomic environment globally is expected to have hurt the growth rate. Further, the slowing deployment of 5G in North America due to sluggish spending is expected to have hurt top-line growth.
Our model estimate for the United States segment is pegged at $910.7 million, indicating a 13.7% year-over-year decline. Meanwhile, China revenues are pegged at $95 million, suggesting a 15% year-over-year decline.
Nevertheless, robust uptake of Wi-Fi 6 and 6E solutions is expected 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.
Skyworks is expected to have benefited from the rapid expansion of mobile network traffic, advances in cloud and edge computing, IoT and the electrification of vehicles.
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:
GoDaddy GDDY has an Earnings ESP of +8.11% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have declined 3.3% in the year-to-date period. GDDY is set to report its third-quarter 2023 results on Nov 2.
Itron ITRI has an Earnings ESP of +23.18% and a Zacks Rank #1.
Itron shares have gained 12.2% in the year-to-date period. ITRI is set to report its third-quarter 2023 results on Nov 2.
Paylocity Holding PCTY has an Earnings ESP of +11.32% and a Zacks Rank #1.
Paylocity shares have declined 9.2% year to date. PCTY is set to report its first-quarter fiscal 2024 results on Nov 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Itron, Inc. (ITRI) : Free Stock Analysis Report
Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report
