Yahoo Finance Skyworks (SWKS) to Report Q2 Earnings: What's in the Cards?
Skyworks Solutions SWKS is slated to release its second-quarter fiscal 2023 results on May 8.
For the fiscal second quarter, revenues are expected in the range of $1.125-$1.175 billion.
Non-GAAP earnings are anticipated to be $2.02 per share at the mid-point of this revenue guidance.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.15 billion, suggesting a 13.95% decline from the figure reported in the year-ago quarter.
The consensus mark for earnings has declined by a penny to $2.01 per share in the past 30 days, suggesting a 23.57% decline 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 the trailing four quarters, delivering an earnings surprise of 1.89% 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, Wi-Fi 6 and 6E solutions is expected to have driven Skyworks’ top line in the fiscal second 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.
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 the company’s 5G solutions.
Moreover, momentum for its 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.
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.
However, challenging macroeconomic conditions, rising inflation and the negative impact of the Russia-Ukraine conflict on European sales are anticipated to have limited the company’s top-line growth in the to-be-reported quarter.
Moreover, shrinking demand for smartphones is likely to have weighed on top-line growth as well as 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 +0.45% 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:
Blink Charging BLNK has an Earnings ESP of +26.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Blink Charging shares have declined 34.7% year to date. BLNK is set to report its first-quarter 2023 results on May 9.
DigitalOcean DOCN has an Earnings ESP of +3.45% and a Zacks Rank of 2, at present.
DigitalOcean shares have gained 23% year to date. DOCN is set to report its first-quarter 2023 results on May 9.
Keysight Technologies KEYS has an Earnings ESP of +0.09% and a Zacks Rank #2.
Keysight shares have declined 16.7% year to date. KEYS is set to report its second-quarter fiscal 2023 results on May 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
Blink Charging Co. (BLNK) : Free Stock Analysis Report
DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
