Skyworks Solutions, Inc. (NASDAQ:SWKS) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that Skyworks Solutions, Inc. (NASDAQ:SWKS) filed its quarterly result this time last week. The early response was not positive, with shares down 3.1% to US$104 in the past week. Results were roughly in line with estimates, with revenues of US$1.2b and statutory earnings per share of US$1.44. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Skyworks Solutions after the latest results.

Check out our latest analysis for Skyworks Solutions

Taking into account the latest results, the 28 analysts covering Skyworks Solutions provided consensus estimates of US$4.48b revenue in 2024, which would reflect a noticeable 3.6% decline over the past 12 months. Statutory earnings per share are expected to descend 15% to US$4.82 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.50b and earnings per share (EPS) of US$5.04 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.0% to US$116, suggesting the revised estimates are not indicative of a weaker long-term future for the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Skyworks Solutions, with the most bullish analyst valuing it at US$154 and the most bearish at US$83.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Skyworks Solutions' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.8% by the end of 2024. This indicates a significant reduction from annual growth of 9.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 16% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Skyworks Solutions is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Skyworks Solutions' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Skyworks Solutions. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Skyworks Solutions going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Skyworks Solutions Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.