Group 1 - SkyWater Technology, Inc. (SKYT) has an average brokerage recommendation (ABR) of 1.60, indicating a consensus between Strong Buy and Buy, with 60% of recommendations as Strong Buy and 20% as Buy [2][3] - Despite the positive ABR, reliance solely on brokerage recommendations may not be prudent, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [3][4] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a higher number of favorable ratings compared to negative ones [4][5] Group 2 - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of near-term price performance, classifying stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [6][9] - The Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements, unlike the ABR which is based solely on brokerage recommendations [9][10] - For SkyWater Technology, the Zacks Consensus Estimate for the current year has declined by 9.4% to -$0.10, indicating growing pessimism among analysts regarding the company's earnings prospects [11][12] Group 3 - The recent decline in the consensus estimate has resulted in a Zacks Rank 4 (Sell) for SkyWater Technology, suggesting caution despite the Buy-equivalent ABR [12]

Core Viewpoint - SkyWater Technology, Inc. (SKYT) has shown significant stock performance recently, with a return of +22.7% over the past month, outperforming the Zacks S&P 500 composite's +1% change [2] Earnings Estimates - SkyWater Technology is expected to report a loss of $0.02 per share for the current quarter, reflecting a year-over-year change of +60% [5] - The consensus earnings estimate for the current fiscal year is -$0.10, indicating a year-over-year change of +41.2%, with a recent change of -9.4% over the last 30 days [5] - For the next fiscal year, the consensus earnings estimate is $0.05, representing a +150% change from the previous year [6] Revenue Growth - The consensus sales estimate for the current quarter is $94.65 million, indicating a year-over-year change of +32.2% [9] - For the current and next fiscal years, sales estimates are $349.35 million and $381.9 million, reflecting changes of +21.9% and +9.3%, respectively [9] - SkyWater Technology reported revenues of $93.33 million in the last quarter, a year-over-year increase of +33.7% [10] Valuation - SkyWater Technology has a Zacks Value Style Score of D, indicating it is trading at a premium compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [12][13] Market Position - The Zacks Rank for SkyWater Technology is 4 (Sell), suggesting potential underperformance compared to the broader market in the near term [7][15]

SkyWater Technology, Inc. (SKYT) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this company have returned +8%, compared to the Zacks S&P 500 composite's +3.8% change. During this period, the Zacks Electronics - Semiconductors industry, which SkyWater Technology falls in, has gained 7.5%. The key question now is: What could be the stock's future directi ...

SkyWater Technology, Inc. (SKYT) closed at $9.74 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 1.01%. Coming into today, shares of the company had gained 6.93% in the past month. In that same time, the Computer and Technology sector gained 5.51%, while the S&P 500 gained 4.31%. The investment community will be paying close atte ...

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 Techn ...

1 IF D H HT T 100 - 100 1 i T 1 Pgiam/iStock via Getty Images Shares of SkyWater Technology, Inc. (SKYT) have shot up considerably in response to the second quarter results. This followed a first quarter in which green shoots as well as continued disappointments were seen. The company was starting to focus on becoming a lower-capital intensive business model. It was on the verge of becoming profitable, seeing real green shoots, although I was quick to acknowledge that investors in SkyWater have seen disappo ...

Core Viewpoint - SkyWater Technologies, a small U.S.-based chip manufacturing start-up, experienced significant stock volatility following its Q1 2024 earnings update, with shares initially dropping over 30% but later rebounding slightly, still down nearly 30% pre-earnings and nearly 20% year-to-date in 2024 [1][2]. Group 1: Business Model and Revenue - SkyWater operates a unique business model where 77% of its Q1 2024 revenue came from its Advanced Technology Service (ATS), a joint development initiative with customers to address specific semiconductor manufacturing needs [2][3]. - ATS revenue increased by 28% year-over-year in Q1, contributing to a total revenue of $79.6 million, which represents a 20% increase [4]. - The ATS program is not designed to be profitable; it serves as a feeder for the Wafer Services segment, which involves manufacturing and selling researched wafer technology to customers [5]. Group 2: Financial Performance and Challenges - Wafer Services revenue was reported at $10 million in Q1, slightly exceeding expectations but down 44% year-over-year [5]. - An additional $8 million ATS charge related to a customer project impacted margins but is expected to aid in achieving profitability for the remainder of 2024 [7]. - The semiconductor manufacturing industry is currently experiencing a cyclical slump, and 2024 is viewed as a transition year for SkyWater as it ramps up ATS development before shifting to more Wafer Services in 2025 and beyond [6]. Group 3: Market Sentiment and Investment Outlook - The volatility in SkyWater's stock price reflects typical small-cap stock behavior, and caution is advised for potential investors [8]. - The company is still in a start-up phase, and it will take time to transition ATS customers to Wafer Services, which is necessary for a more substantial impact on profitability [9]. - While there is long-term potential for growth, current market conditions suggest that there are more stable investment opportunities in the semiconductor sector for new investments [10].

SkyWater Technology, Inc. (NASDAQ:SKYT) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Claire McAdams - IR Thomas Sonderman - President & CEO Steve Manko - CFO Conference Call Participants Nicolas Doyle - Needham & Company Krish Sankar - TD Cowen Robert Aguanno - Piper Sandler Operator Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to the SkyWater Technology Q1 2024 Financial Results Confe ...

Financial Performance - SkyWater's Q1 2024 total revenue reached $79.6 million, a 20% increase year-over-year[118] - Adjusted EBITDA for Q1 2024 was $4.9 million, compared to $8.1 million in Q1 2023[14] - The company experienced a net loss of $(5.7) million in Q1 2024, an improvement from $(10.3) million in Q4 2023[14] - Q1 2024 GAAP gross margin was 163%, a decrease of (860) bps compared to 249% in Q1 2023[105] Revenue Breakdown - ATS (Advanced Technology Services) development revenue hit a record of $61.2 million in Q1 2024, up 28% year-over-year[75] - Wafer Services revenue was $100 million in Q1 2024, a decrease of (44)% compared to $178 million in Q1 2023[75, 118] - Tools revenue reached $8.5 million in Q1 2024[75] Business Outlook - The company anticipates ATS development growth in the range of 10% to 20% over 2023[45] - Tools revenue is expected to be at least $20 million in Q2 2024[24] - Wafer Services revenue is expected to decline to the $4 to $5 million range in Q2 and then stabilize[153]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-40345 SkyWater Technology, Inc. (Exact name of registrant ...