SkyWater Technology Q2 2025 Earnings Preview: Expecting Negative EPS, Revenue Decline

SkyWater Technology is set to announce Q2 2025 earnings on August 6th, with a consensus EPS estimate of -$0.18 (1000% Y/Y) and revenue estimate of $57.46M (-38.4% Y/Y). Over the past 2 years, the company's revenue has declined by 38.4% YoY.

SkyWater Technology, Inc. (SKYT) is poised to release its second-quarter 2025 earnings on August 6th, with analysts expecting a loss of 16-22 cents per share and revenues between $55 million and $60 million. The company's earnings are anticipated to show a decrease of 38.4% year-over-year (YoY) in revenue, with a consensus estimate of $57.46 million [1].

SkyWater's earnings have consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 203.9%. However, the company's stock has underperformed its peers and the broader sector, with a year-to-date decline of 36.4%, compared to the Zacks Computer and Technology sector's return of 9.1% and the Zacks Electronic Semiconductors industry's return of 15.1% [1].

The company's second-quarter 2025 results are expected to benefit from the strong adoption of its ThermaView platform, which focuses on the advanced thermal imaging market. More than half of Wafer Services' revenues in the first quarter of 2025 came from new products that include ThermaView. However, the Advanced Technology Services (ATS) division is expected to have suffered from continued budget delays and sluggish federal spending [1].

SkyWater's stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend. Despite this, the company's Value Score of B suggests that the stock is undervalued, with a forward 12-month Price/Sales ratio of 1.22X, significantly lower than the industry average [1].

SkyWater's prospects are driven by its strong portfolio, which includes ThermaView and its growing quantum computing footprint. The company's Technology as-a-Service model is gaining traction, and its Fab 25 acquisition is expected to contribute significantly to its ATS revenues. However, the company's second-quarter 2025 revenues are expected to decline due to budgetary issues in the ATS division, with growth expected to happen only in the second half of 2025 [1].

SkyWater currently has a Zacks Rank #3 (Hold), indicating that investors should wait for a more favorable entry point to accumulate the stock. The company's earnings report on August 6th will provide further insight into its financial health and future prospects.

References:
[1] https://finance.yahoo.com/news/buy-sell-hold-skywater-stock-154300833.html