What To Expect From Skyworks Solutions’s (SWKS) Q3 Earnings

Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Skyworks Solutions met analysts’ revenue expectations last quarter, reporting revenues of $905.5 million, down 15.5% year on year. It was a slower quarter for the company, with a decline in its operating margin and an increase in its inventory levels.

Is Skyworks Solutions a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Skyworks Solutions’s revenue to decline 16.2% year on year to $1.02 billion, a further deceleration from the 13.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.52 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Skyworks Solutions has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Skyworks Solutions’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and Himax reported a revenue decline of 6.8%, topping estimates by 1.1%. Impinj traded down 13.1% following the results while Himax was also down 1.1%.

Read our full analysis of Impinj’s results here and Himax’s results here.

Inflation fears have put pressure on growth stocks, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Skyworks Solutions is down 10.2% during the same time and is heading into earnings with an average analyst price target of $112.55 (compared to the current share price of $89.01).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.