SkyWater Technology Reports Q2 Results: A Mixed Outlook Ahead
SkyWater Technology, Inc. (NASDAQ:SKYT) recently released its quarterly earnings, revealing a solid revenue figure of $61 million that met analysts’ expectations. The company incurred a loss of $0.15 per share, slightly better than the anticipated $0.17 loss, culminating in a set of results viewed as respectable by the market.
Despite the stability in current revenues, the future forecast raises concerns. Analysts predict a notable decline in revenue for 2025, with expectations of $302.8 million, a decrease of 6.5% from the previous year. Additionally, anticipated losses are set to widen by 46% to $0.26 per share. These adjustments signal a shift in sentiment, as prior forecasts had suggested revenue of $309 million and losses of $0.30 per share.
With the latest report, the consensus price target for SkyWater has dropped by 6.3% to $11.80. Analysts exhibit varied perspectives on the company’s potential, with price targets ranging from a bullish $15.00 to a bearish $8.00, but these estimates indicate a lack of extreme divergences.
The projections for SkyWater starkly contrast with the broader semiconductor industry, where competitors are anticipated to experience a robust annual growth rate of 16%. Over the past five years, SkyWater has enjoyed a 23% annual growth, a trajectory that now appears unsustainable.
Analysts have not revised their forecasts for upcoming losses, maintaining a cautious stance on the firm’s revenue trajectory. While the adjustments reflect a somber outlook, long-term profitability remains critical for potential investors. Caution is advised, as three warning signs regarding SkyWater’s financial health have been identified.
Investors are encouraged to consider these insights carefully as they contemplate their positions in the company.
Source
Photo credit simplywall.st
