Skyworks Solutions Faces Headwinds: Analysts Slash Price Forecasts Amid Weak Guidance And Inventory Challenges

Skyworks Solutions Inc SWKS shares are trading lower on Wednesday after the company reported fourth-quarter results and several analysts cut the price target.

Yesterday, the company reported adjusted EPS of $1.55, which beat the analyst consensus estimate of $1.52, and sales of $1.025 million, which aligned with the consensus estimate. 

Skyworks Solutions projects first-quarter of 2025 revenue to be $1.05 billion – $1.08 billion ($1.096 billion estimate) with adjusted EPS of $1.57 at the mid-point of the revenue range versus the estimate of $1.72.

Morgan Stanley cut the price target to $87 from $117 while maintaining an Equal Weight rating. On the other hand, Mizuho reaffirmed an Outperform rating and cut the price target to $105 from $127.

Needham analyst Nick Doyle maintained a Hold rating and wrote that Skyworks delivered a solid quarter but provided weaker-than-expected guidance due to tempered growth expectations in Broad Markets, impacted by macro weakness and excess inventories.

Unlike its peers, Skyworks’ Mobile segment performance and guidance were mostly in line, according to the analyst.

Doyle notes that the negative share shifts are largely behind, with more opportunities emerging next year.

The analyst introduced FY25 estimates, projecting an 8% decline in Mobile due to content losses, but anticipates a modest recovery in FY26 as next-gen content and units become clearer and Broad Markets inventory issues subside.

Also, Benchmark analyst Cody Acree reaffirmed a Hold rating on the stock.

The rating reflects the company’s share losses at Apple and Samsung, limited exposure to China, and anticipated negative earnings leverage for at least the next year.

The analyst says that investors are concerned about the company’s competitive position in the growing but still sluggish smartphone market, ongoing inventory issues in Broad Markets, and unexpected weakness in the automotive, industrial, and networking sectors.

Investors can gain exposure to the stock via Global X Internet of Things ETF SNSR and First Trust Nasdaq Semiconductor ETF FTXL.

Price Action: SWKS shares are down 4.04% at $83.52 at the last check Wednesday.

Image via Shutterstock

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