Skyworks Solutions Stock Plunges: What Happened?

Skyworks Solutions (SWKS) stock took a nosedive on Thursday, plummeting over 24% after the company reported its fiscal-year 2025 first-quarter earnings and issued second-quarter guidance below estimates. The stock gapped decisively below the lower trendline of an extended trading range after the chipmaker's light mobile revenue outlook. Investors should watch major support levels around $62 and $36, while also monitoring key overhead areas near $74 and $86.

Skyworks reported adjusted earnings per share of $1.60, beating analysts' estimate of $1.57. In addition, the company reported sales of $1.068 billion, beating analysts' estimate of $1.066 billion. Furthermore, Skyworks reported $377 million in operating cash flow, representing a 35% margin, and $338 million in free cash flow at a 32% margin. However, the company's guidance for the 2025 fiscal-year second quarter fell short of expectations, with adjusted earnings per share of $1.20, versus analysts' estimate of $1.22, and revenue between $935 million and $965 million, versus analysts' estimate of $949.04 million.

Following the earnings report, multiple analysts issued price target adjustments. Morgan Stanley analyst Joseph Moore maintained an Equal-Weight rating on Skyworks and lowered the price target from $87 to $72. Piper Sandler analyst Harsh Kumar maintained a Neutral rating on Skyworks and lowered the price target from $85 to $70. Rosenblatt analyst Kevin Cassidy downgraded Skyworks from a Buy rating to a Neutral rating and lowered the price target from $120 to $80.

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In conclusion, Skyworks Solutions' stock price plummeted on Thursday following the company's earnings report and guidance below estimates. Investors should monitor the company's progress and any developments related to its key customers, such as Apple, to assess the potential impact on its stock price. The recent downgrades by investment banking firms highlight the key concerns and potential catalysts that could influence Skyworks Solutions' stock price in the near and long term.