Celebrations may be in order for Skyworks Solutions, Inc. (NASDAQ:SWKS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the latest consensus from Skyworks Solutions' five analysts is for revenues of US$7.6b in 2027, which would reflect a sizeable 89% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 48% to US$2.85. Prior to this update, the analysts had been forecasting revenues of US$4.0b and earnings per share (EPS) of US$2.20 in 2027. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Skyworks Solutions
With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.9% to US$75.12 per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Skyworks Solutions' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Skyworks Solutions is forecast to grow faster in the future than it has in the past, with revenues expected to display 66% annualised growth until the end of 2027. If achieved, this would be a much better result than the 6.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 27% annually. Not only are Skyworks Solutions' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Skyworks Solutions.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Skyworks Solutions analysts - going out to 2029, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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