Goldman Sachs has started coverage on Skyworks Solutions (SWKS, Financial), assigning a 'Sell' rating and setting a price target of $70. The investment firm has taken a generally optimistic stance on the U.S. analog and radio frequency semiconductor sector, highlighting cyclic opportunities it anticipates in the market. It predicts that the analog industry will align closer to its trendline shipments within the next 12 to 18 months. Goldman Sachs is particularly positive about companies that are currently shipping well below trend and have demonstrated effective supply chain management. These insights were shared with investors through a research note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Skyworks Solutions Inc (SWKS, Financial) is $69.86 with a high estimate of $100.00 and a low estimate of $52.00. The average target implies an downside of 10.01% from the current price of $77.63. More detailed estimate data can be found on the Skyworks Solutions Inc (SWKS) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Skyworks Solutions Inc's (SWKS, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Skyworks Solutions Inc (SWKS, Financial) in one year is $76.44, suggesting a downside of 1.53% from the current price of $77.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Skyworks Solutions Inc (SWKS) Summary page.
SWKS Key Business Developments
Release Date: May 07, 2025
- Revenue: $953 million, above the midpoint of guidance.
- Earnings Per Share (EPS): $1.24, $0.04 above guidance.
- Free Cash Flow: $371 million.
- Gross Margin: 46.7%, exceeding expectations.
- Operating Income: $222 million, with an operating margin of 23.3%.
- Net Income: $197 million.
- Operating Cash Flow: $410 million.
- Capital Expenditures: $39 million.
- Shareholder Returns: $600 million returned through dividends and share repurchases.
- Mobile Revenue: 62% of total revenue, down 17% sequentially.
- Broad Market Portfolio Revenue: Increased 2% sequentially and 3% year-over-year.
- Operating Expenses: $223 million.
- Cash and Investments: Over $1.5 billion.
- Debt: $1 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Skyworks Solutions Inc (SWKS, Financial) delivered solid financial performance with revenue of $953 million, exceeding the midpoint of their guidance.
- The company generated a free cash flow of $371 million, demonstrating strong cash generation capabilities.
- Skyworks Solutions Inc (SWKS) returned a record $600 million to shareholders through share repurchases and dividend payments, highlighting their commitment to shareholder value.
- The diversified business segments, including automotive and edge IoT, showed steady recovery with five consecutive quarters of sequential revenue growth.
- The company secured design wins across 5G premium Android smartphones and expanded WiFi 7 across enterprise access points, routers, and home mesh networks.
Negative Points
- Mobile revenue, which constitutes 62% of total revenue, was down 17% sequentially, reflecting typical seasonal patterns.
- The macroeconomic and tariff developments present complexities, although the company believes its diversified global supply chain can navigate potential disruptions.
- The infrastructure networking and cloud segment remains choppy, indicating areas that need further growth.
- The company faces a highly competitive market, requiring continuous innovation and cost management to maintain its position.
- There is ongoing inventory digestion in certain end markets, which could impact future growth trajectories.
