SkyWater Technology (SKYT) has attracted significant investor attention recently, with its shares surging 12.9% over the past month. This performance outpaces both the S&P 500 composite’s 4.4% gain and the 11.6% rise within the broader Electronics-Semiconductors industry during the same period.
While market trends can be influenced by news and rumors, a company’s fundamental outlook, particularly its earnings potential, is a key driver for long-term investment decisions.
For the current quarter, SkyWater is expected to report a loss of $0.17 per share. The consensus earnings estimate for the current fiscal year points to a loss of $0.01 per share. However, analysts project a return to profitability for the next fiscal year, with an estimated consensus of $0.23 per share. These earnings estimates have remained unchanged over the last 30 days.
On the revenue side, the forecast for the current quarter is $57.3 million, a 38.6% decline year-over-year. Projections for the current fiscal year estimate revenue at $307.15 million, down 10.3% from the prior year. A significant rebound is anticipated for the next fiscal year, with sales expected to grow 21.8% to $374.15 million.
In its last reported quarter, SkyWater posted revenues of $61.3 million, a 23% decrease from the year-ago period, but this figure represented a 0.4% positive surprise over consensus estimates. The company has a strong history of outperforming expectations, having beaten consensus earnings per share (EPS) estimates in each of the last four quarters and topped revenue estimates three times over the same period.
From a valuation perspective, SkyWater appears to be trading at a discount compared to its peers. Despite the stock’s recent momentum, the combination of its current financial projections and stable earnings estimates has resulted in a “Hold” rating from analysts, suggesting its near-term performance may align with the broader market.
Source link
