Skyworks Set to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Skyworks Solutions (SWKS) is expected to report a decline in earnings and revenues for the fourth quarter of fiscal 2024, with earnings projected at $1.52 per share, reflecting a 30.91$1 billion and $1.04 billion, indicating a 16.17$1.52, consistent with the Zacks Consensus Estimate over the past month [1] - Revenue guidance for the quarter is set between $1 billion and$1.04 billion, with the Zacks Consensus Estimate at $1.02 billion [2] Influencing Factors - The performance in Q4 is likely to benefit from a diversified portfolio, strong mobile demand, and growth in edge IoT and automotive sectors [3] - A 20% sequential increase in mobile business revenues is expected due to normalizing demand and supply conditions in the smartphone market [3] - The proliferation of 5G content in new smartphones is anticipated to positively impact revenues [4] - Strong demand for edge IoT, particularly Wi-Fi 7 systems, is contributing to a multiyear upgrade cycle, which is expected to enhance performance [5] - The rising adoption of generative AI and 5G technologies is driving demand for high-performance RF solutions, benefiting the company [6] - Long-term growth opportunities in the automotive sector are noted, driven by the increasing complexity of radio solutions in software-defined vehicles and connected cars [7] Challenges - Despite positive factors, challenges such as excess inventory, supply chain issues, and economic uncertainty are expected to negatively impact top-line growth [8] Earnings Model Insights - According to the Zacks model, Skyworks currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable [9]