Skyworks Solutions SWKS is slated to release first-quarter fiscal 2025 results on Feb. 05, 2025.

For the first quarter of fiscal 2025, non-GAAP diluted shares are expected to be $1.57 per share.

The Zacks Consensus Estimate for earnings has remained steady at $1.57 per share in the past 30 days. The projection indicates a 20.30% decline from that reported in the year-ago quarter.

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Skyworks Solutions, Inc. Price and EPS Surprise

Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote

For the first quarter of fiscal 2025, the company expects revenues between $1.05 billion and $1.08 billion, up 4% sequentially at the mid-point.

The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.07 billion, indicating a 16.17% year-over-year decline.

Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.24%.

Let’s see how things have shaped up prior to the announcement.

Factors Likely to Have Influenced Q1 Performance

SWKS’ first-quarter fiscal 2025 performance is likely to have benefited from its diversified portfolio, strong mobile demand, and growth in edge IoT and automotive sectors.

Skyworks anticipates a mid-single-digit sequential increase in mobile business revenues in the fiscal first quarter due to normalizing demand and supply conditions in the smartphone market.

The company also expects that 5G content in new smartphones, including the Google Pixel 8a, Samsung Galaxy M, and Oppo Reno12, will continue to contribute positively to revenues in the next quarter, particularly in the premium segment of the market.

SWKS expects modest sequential growth in broad markets, with a return to year-over-year growth. Specifically, there is strong demand in edge IoT, including Wi-Fi 7 systems, which is likely to lead to a multiyear upgrade cycle in the next quarter due to faster data transfer speeds and lower latency.

The rising adoption of generative AI and 5G technologies is expected to drive continued demand for high-performance RF solutions in the next quarter. Skyworks is positioned to benefit from the growing need for fast RF connectivity and power management in AI applications, next-generation smartphones, and autonomous vehicles.

Despite some inventory challenges, Skyworks sees long-term growth opportunities in its automotive business. The increasing focus on software-defined vehicles, connected cars, and in-cabin user experiences is expected to have been generating higher levels of radio complexity, creating demand for Skyworks’ advanced RF solutions.

However, challenges from excess inventory, supply chain issues, economic uncertainty, and delays in 5G and edge IoT adoption are expected to have hurt SWKS’ top-line growth.

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 exact case here.

Skyworks has an Earnings ESP of 0.00% and 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Bill Holdings BILL has an Earnings ESP of +29.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holdings’ shares have gained 25.1% in the trailing 12 months. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

AMETEK AME has an Earnings ESP of +0.54% and a Zacks Rank of 2 at present.

Arista Network shares have gained 12.2% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.

CyberArk Software CYBR has an Earnings ESP of +2.71% and a Zacks Rank of 3 at present.

CyberArk Software shares have surged 59.7% in the trailing 12 months. CYBR is set to report its fourth-quarter 2024 results on Feb. 13.

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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report

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