Company Performance - SkyWater Technology, Inc. (SKYT) closed at $11.76, reflecting a +1.82% change from the previous day, outperforming the S&P 500's daily gain of 0.88% [1] - Over the past month, shares of SkyWater Technology have decreased by 11.7%, underperforming the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17% [1] Earnings Forecast - The upcoming earnings report for SkyWater Technology is projected to show an earnings per share (EPS) of -$0.07, indicating a 250% decrease from the same quarter last year [2] - Revenue is estimated to be $74.1 million, reflecting a 6.38% decline compared to the corresponding quarter of the prior year [2] Analyst Estimates - Changes in analyst estimates for SkyWater Technology are crucial as they often reflect short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates these estimate changes, is used to gauge stock performance, with a current Zacks Rank of 3 (Hold) for SkyWater Technology [5] Industry Context - SkyWater Technology operates within the Electronics - Semiconductors industry, which is part of the Computer and Technology sector, holding a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Stock Performance - SkyWater Technology Inc closed at $11 33, marking a +0 18% move from the prior day, outperforming the S&P 500's daily gain of 0 12% [1] - Shares of the company have appreciated by 11 32% over the past month, outperforming the Computer and Technology sector's loss of 3 73% and the S&P 500's loss of 3 45% [1] Earnings and Revenue Projections - The company's earnings per share (EPS) are projected to be -$0 07, reflecting a 250% decrease from the same quarter last year [2] - The latest consensus estimate predicts revenue to be $74 1 million, indicating a 6 38% decrease compared to the same quarter of the previous year [2] Analyst Forecasts and Revisions - Investors should monitor recent revisions to analyst forecasts, as these modifications signify changing near-term business trends [3] - Positive alterations in estimates indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank and Industry Performance - SkyWater Technology Inc currently has a Zacks Rank of 3 (Hold) [5] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 92, placing it in the top 37% of all 250+ industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - SkyWater Technology (SKYT) has demonstrated significant stock performance, with a 50.9% increase over the past six months, outperforming both the Zacks Electronics - Semiconductors industry and the Zacks Computer & Technology sector [1] Group 1: Stock Performance - SKYT shares have gained 30.9% in the last six months, while competitors like Cirrus Logic (CRUS) have seen a decline of 27.7% [1] - The stock's performance has raised questions among investors regarding its future potential and whether to hold or sell [2] Group 2: Strategic Partnerships - SkyWater is enhancing its commercial wafer services business through long-term partnerships, which are crucial for growth in advanced computing and thermal imaging platforms [3] - A collaboration with Quantum-Si Incorporated (QSI) aims to develop the Proteus platform for advanced protein sequencing, combining biotechnology expertise with manufacturing capabilities [4][5] - The partnership with Multibeam Corp. introduces a new Multicolumn E-Beam Lithography (MEBL) system, providing innovative production capabilities for various applications [6][7] Group 3: Long-Term Prospects - SkyWater's focus on advanced packaging and specialty semiconductor solutions aligns with high-growth markets such as AI, automotive, and aerospace [8] - Expected tooling revenues of $40-$50 million in 2025 could enhance long-term performance, especially as the company transitions ATS customers into production [9] Group 4: Near-Term Challenges - SkyWater faces challenges, including a 9% sequential decline in ATS revenues due to funding delays in aerospace and defense programs [10] - Analysts project a revenue decline of 4.5% for 2025, with expected revenues of $325.6 million and a projected loss of 10 cents per share [10][11] - Macroeconomic uncertainties and increasing competition pose risks to short-term growth, and the company's valuation is currently stretched, indicated by a Zacks Value Style Score of D [11]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about SkyWater Technology, Inc. (SKYT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.SkyWater Technol ...

SkyWater Technology, Inc. (SKYT) shares ended the last trading session 8.3% higher at $15.69. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 55.5% gain over the past four weeks.SkyWater Technology  is benefiting from significant customer co-investment, record tools revenue, and growing commercial partnerships, leading to growth in its Aerospace and Defense Technologies and Wafer Services segments.This company is e ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about SkyWater Technology, Inc. (SKYT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.SkyWater Technology curre ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!In August, I wrote that SkyWater Technology, Inc. ( NASDAQ: SKYT ) was delivering on impressive topline results, with the focus being on the topline element of that sentence.As the leader of the i ...

Financial Data and Key Metrics Changes - SkyWater reported a record revenue of $94 million for Q3 2024, with a positive non-GAAP EPS of $0.08 [5][16] - Combined ATS and Wafer Services revenue totaled $63 million, while tools revenue reached an all-time record of $31 million [5][16] - Gross margin for the quarter was 22%, driven by operational efficiencies and recovery of $5.6 million from a prior cost accrual [6][18] Business Line Data and Key Metrics Changes - ATS development revenue was $56 million, showing a year-over-year growth of 5% but a decline of 9% from Q2 [6][16] - Wafer Services revenue exceeded expectations at nearly $7 million, benefiting from the ability to balance production wafers through the fab [6][16] - Tools revenue, which represents customer-funded capex investments, increased to a record $30.7 million [16] Market Data and Key Metrics Changes - The company anticipates double-digit revenue growth in the ATS business for 2024, with a three-year CAGR for ATS revenue exceeding 35% [8] - The company is experiencing strong demand in the aerospace and defense sectors, with expectations for continued growth in 2025 [12][13] Company Strategy and Development Direction - SkyWater is focusing on expanding its leadership in critical semiconductor technologies and has been selected for multiple projects under the Microelectronics Commons Initiative [10] - The company announced a multiyear supply agreement with NanoDx, indicating a strategic move towards supporting emerging growth technologies [9] - The appointment of Bassel Haddad as senior vice president for advanced packaging aims to build a scalable manufacturing presence in the U.S. [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on key programs and maintain strong customer relationships despite temporary funding constraints [41] - The outlook for Q4 includes expected total revenue of $72 million to $76 million, with a focus on sequential growth in ATS revenue [12][22] - For 2025, the company expects continued growth driven by strong demand in A&D programs and new commercial initiatives [13][14] Other Important Information - The company reported free cash flow positive of $14.3 million in Q3, with total cash at quarter-end remaining consistent at $20.7 million [20][21] - Operating expenses were aligned with expectations at $14.1 million, and the company reduced overall indebtedness by approximately $6 million [20][22] Q&A Session Summary Question: Guidance on gross margin for Q4 - Management confirmed that gross margin is expected to be in the range of 19% to 23%, indicating a flat quarter-to-quarter performance for ATS and Wafer Services revenue [29] Question: Expectations for 2025 and seasonality - Management anticipates overall growth in Wafer Services and ATS for 2025, with seasonality typically seen in Q3 due to A&D concentration [30] Question: Tool revenue guidance for Q4 and 2025 - Management noted that tool revenue guidance for Q4 is slightly softer due to supplier timing, with a significant portion of tool revenue expected to be recognized in the second half of 2025 [34] Question: Accrual reversal implications - The reversal of an $8 million accrual indicates strong progress in a technology development program, with expectations for continued advancement [38] Question: Impact of government budgets on A&D programs - Management expressed confidence in the funding and commitment to A&D programs as the new fiscal year begins, despite previous budget constraints [41] Question: Gross margin trajectory for 2025 - Management expects gross margins to increase in 2025 due to lower tool revenue, with continued growth in ATS and Wafer Services expected to drive overall profitability [44]

Company Performance - SkyWater Technology, Inc. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, and compared to a loss of $0.05 per share a year ago, representing an earnings surprise of 500% [1] - The company posted revenues of $93.82 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 0.88%, but showed an increase from year-ago revenues of $71.62 million [2] - Over the last four quarters, SkyWater Technology has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - SkyWater Technology shares have increased by approximately 2.8% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $81.7 million, and for the current fiscal year, it is -$0.10 on revenues of $349.35 million [7] Industry Context - The Electronics - Semiconductors industry, to which SkyWater Technology belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact SkyWater Technology's stock performance [5][6]

SkyWater Technology (SKYT) is set to report its third-quarter 2024 results on Nov. 7.SKYT expects third-quarter 2024 revenues to be slightly higher on a sequential basis. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $94.65 million, indicating growth of 32.16% year over year. The consensus mark for loss is currently pegged at 2 cents per share, down from earnings of 1 cent over the past 30 days. SkyWater reported loss of 5 cents per share in the year-ago quarter.SKYT’s earni ...