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 ...

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 ...