Skyworks Stock Tumbles 10 After Lower Guidance

 Skyworks Stock Tumbles 10 After Lower Guidance

Skyworks Stock Tumbles 10% After Lower Guidance

On Monday, Skyworks Solutions (listed on NASDAQ) reported its 2nd quarter results. For the most part, the results were in line with the market expectations.

However, Skywork's guidance for the current quarter was lower than Wall Street expectations. As a result of this, the company's stock tumbled and showed signs of bearish pressure.

Skyworks Solutions: Q3 Projected Revenue Is $1.05 - $1.090 Billion

During Tuesday's pre-market session, the Skyworks Solutions stock was down by 10%, mainly due to the lowered guidance. The EPS for the 2nd quarter was reported to be $2.02, with revenue of $1.15 billion.

Both of these results were in line with the estimates of Wall Street. However, the company estimated its revenue to be $1.05 - $1.090 billion for theQ3 2023. Similarly, the diluted EPS for the 3rd quarter was estimated to be around $1.67.

On the contrary, Wall Street was expecting revenue of $1.16 billion and an EPS of $2.06 for the 3rd quarter.

After the recent development, the analysts at BMO also downgraded the Skyworks Solutions stock lower and labelled it as 'market perform'.

In addition, BMO analysts have also lowered the $140 price target for Skyworks Solutions stock to $100 only! As for why they did it, they cited it as a major structural issue that required re-evaluation.

Similarly, the analysts at Stifel also lowered the target for SWKS stock to $130 only. However, they maintained their buy rating for the Skyworks Solutions stock as they believe it to have a good valuation.

Given the fears of a recession in Europe and other parts of the world, the revenue of Skyworks Solutions could very well go down. After all, the demand for semiconductors and chips relies heavily on public spending.

So if the public is not buying goods such as cars, gadgets, or other stuff that requires chips, it would mean less business for Skyworks Solutions!

However, we also can't ignore the fact that markets can sometime show an extreme reaction only to return back to normal!

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