Skyworks Solutions Faces Analyst Downgrades and Declining Revenue

Skyworks Solutions Experiences Analyst Downgrades. Recent reports show a concerning trend for Skyworks Solutions (SWKS), with analysts adjusting their ratings and a notable revenue decline impacting investor sentiment.

Date: 11-01-2025

AI Rating: 4

Analyst Ratings and Changes: The report reveals a damning landscape for Skyworks Solutions, with a total of 13 analysts providing ratings that range from bullish to bearish. Over the last month, there has been a clear decrease in positive ratings from analysts.
2 bullish ratings, 1 somewhat bullish, 7 indifferent, 1 somewhat bearish, and 2 bearish ratings show that analysts' sentiments have shifted negatively, exacerbated by the fact that no improvements in ratings were observed over the past month.

Price Target Adjustments: A stark decrease in the company's average price target by 14.49% to $94.85 signposts growing concerns among analysts. The extent of the decrease indicates lowered expectations for Skyworks' stock performance moving forward.

Revenue Growth: The report specifies a revenue decline of approximately -15.9%, which paints a serious picture of the company's financial performance. This significant drop highlights an increasing struggle to maintain growth, especially when compared to competitors in the Information Technology sector.

Net Margin: On a more positive note, Skyworks' net margin stands at 5.9%, surpassing industry averages. This figure suggests effective cost management and profitability amidst otherwise challenging circumstances.

Return on Equity (ROE): On the downside, the company's ROE is at 0.95%, which is below industry averages, indicating possible inefficiencies in maximizing returns on their equity capital—which could raise red flags for investors seeking strong returns.

Conclusion: Overall, the analysis points to a challenging environment for Skyworks Solutions characterized by negative analyst sentiments, a dip in revenue growth, but a commendable net margin. This combination may lead investors to reevaluate their positions in the company.

Stocks: SWKS