Analysts Expect SkyWater Technology, Inc. (NASDAQ:SKYT) To Breakeven Soon

SkyWater Technology, Inc. (NASDAQ:SKYT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SkyWater Technology, Inc. manufactures integrated circuits. The company’s loss has recently broadened since it announced a US$21m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$22m, moving it further away from breakeven. Many investors are wondering about the rate at which SkyWater Technology will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for SkyWater Technology

SkyWater Technology is bordering on breakeven, according to the 4 American Semiconductor analysts. They expect the company to post a final loss in 2021, before turning a profit of US$14m in 2022. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for SkyWater Technology given that this is a high-level summary, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with SkyWater Technology is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on SkyWater Technology, so if you are interested in understanding the company at a deeper level, take a look at SkyWater Technology's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is SkyWater Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether SkyWater Technology is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SkyWater Technology’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

When trading SkyWater Technology or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.