Skyworks Solutions Stock Plunges as Segment Forecasts Dim

Skyworks Solutions (SWKS) shares took a nosedive on Wednesday after the company reported fourth-quarter results and issued guidance for the first quarter of 2025 that fell short of analysts' expectations. The stock plummeted 4.04% to $83.52 at the last check Wednesday, following the earnings release.

The company reported adjusted EPS of $1.55, which beat the analyst consensus estimate of $1.52, and sales of $1.025 million, which aligned with the consensus estimate. However, Skyworks' guidance for the first quarter of 2025 missed the mark, with projected revenue of $1.05 billion - $1.08 billion ($1.096 billion estimate) and adjusted EPS of $1.57 at the mid-point of the revenue range versus the estimate of $1.72.

Morgan Stanley cut the price target on Skyworks from $117 to $87, maintaining an Equal Weight rating. Mizuho reaffirmed an Outperform rating but cut the price target to $105 from $127. Needham analyst Nick Doyle maintained a Hold rating, noting that Skyworks delivered a solid quarter but provided weaker-than-expected guidance due to tempered growth expectations in Broad Markets, impacted by macro weakness and excess inventories.



Benchmark analyst Cody Acree reaffirmed a Hold rating on the stock, citing concerns about the company's competitive position in the growing but still sluggish smartphone market, ongoing inventory issues in Broad Markets, and unexpected weakness in the automotive, industrial, and networking sectors.

Investors can gain exposure to Skyworks Solutions through Global X Internet of Things ETF SNSR and First Trust Nasdaq Semiconductor ETF FTXL.

In conclusion, Skyworks Solutions' stock took a significant hit following the company's earnings release and guidance for the first quarter of 2025. The company's guidance for revenue and EPS fell short of analysts' expectations, leading to price target cuts and a downgrade from Morgan Stanley. Investors should closely monitor the situation and consider the potential impact on the broader semiconductor market.