Skyworks to Report Q2 Earnings: What's in Store for the Stock?

Skyworks Solutions SWKS is slated to release second-quarter fiscal 2025 results on Wednesday.For the second quarter of fiscal 2025, the company expects non-GAAP diluted shares of $1.20 per share.The Zacks Consensus Estimate for earnings has remained steady at $1.20 per share in the past 30 days. The projection indicates a 22.58% decline from that reported in the year-ago quarter. For the second quarter of fiscal 2025, the company expects revenues between $935 million and $965 million.Skyworks Solutions, Inc. Stock Price and EPS Surprise Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. QuoteThe Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $951.26 million, indicating a 9.06% year-over-year decline.Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.46%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).Let’s see how things have shaped up prior to the announcement.Factors Likely to Have Influenced Q2 PerformanceSWKS’ second-quarter fiscal 2025 performance is likely to have benefited from its diversified portfolio and growth in edge IoT and automotive sectors.The company expects that 5G content in new smartphones, including the Google Pixel 8a, Samsung Galaxy M, and Oppo Reno12, is likely to have continued to contribute positively to revenues in the to-be-reported quarter, particularly in the premium segment of the market.SWKS expects modest sequential growth in broad markets, with a return to year-over-year growth. Specifically, there is strong demand for edge IoT, including Wi-Fi 6e and Wi-Fi 7 systems, which is likely to lead to a multiyear upgrade cycle in the to-be-reported quarter due to faster data transfer speeds and lower latency.The rising adoption of generative AI and 5G technologies is expected to have driven continued demand for high-performance RF solutions in the to-be-reported quarter. Skyworks is positioned to benefit from the growing need for fast RF connectivity and power management in AI applications, next-generation smartphones, and autonomous vehicles.Despite some inventory challenges, Skyworks sees long-term growth opportunities in its automotive business. The increasing focus on software-defined vehicles, connected cars, and in-cabin user experiences is expected to have generated higher levels of radio complexity, creating demand for Skyworks’ advanced RF solutions in the to-be-reported quarter.However, Mobile revenue is expected to decline in the second quarter of 2025 by mid-to-high teens sequentially due to historical seasonality. Continued weakness in industrial and infrastructure due to sluggish demand is expected to have hurt top-line growth in the to-be-reported quarter.What Our Model Says on SWKS StockPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.Skyworks has an Earnings ESP of -0.83% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Affirm AFRM has an Earnings ESP of +63.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Affirm shares have lost 14.1% in the year-to-date period. Affirm is set to report its third-quarter fiscal 2025 results on May 8.StoneCo STNE has an Earnings ESP of +6.25% and a Zacks Rank of 1 at present.StoneCo shares have surged 72.8% in the year-to-date period. STNE is set to report its first-quarter 2025 results on May. 8.Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank of 2 at present.Baidu shares have gained 6.7% in the year-to-date period. BIDU is set to report its first-quarter 2025 results on May 21.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU): Free Stock Analysis Report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks