SkyWater Technology Reports Mixed Quarterly Results: Analysts Adjust Projections
SkyWater Technology, Inc. (NASDAQ: SKYT) announced its quarterly results last week, revealing revenues of $61 million—aligning with analyst expectations. However, the company reported a smaller-than-anticipated statutory loss of $0.15 per share, an improvement of 12% over forecasts. Following these results, analysts have reevaluated their performance outlook for the semiconductor manufacturing firm.
Despite the positive surprise in losses, the consensus from SkyWater’s five analysts indicates a decline in future revenues, projecting a drop to $302.8 million in 2025—a 6.5% decrease compared to previous years. Losses are also expected to increase by 46%, reaching $0.26 per share.
This shift reflects a downgrade from prior estimates of $309 million in revenue and losses of $0.30 per share for 2025. Analysts have reduced the consensus price target by 6.3% to $11.80, illustrating diminished sentiment due to falling revenue forecasts, even as the anticipated losses per share were trimmed.
Interestingly, there is a notable range of opinions among analysts: the most optimistic evaluation places the stock at $15.00, while the most conservative targets it at $8.00 per share. This discrepancy suggests mixed perceptions, yet the forecasts indicate that SkyWater’s revenue growth will lag significantly behind the industry average of 16% per year.
In summary, while the recent results show improved loss projections, the downward revisions in revenue estimates highlight potential challenges ahead for SkyWater Technology. Analysts remain cautious, advising investors to focus on long-term earnings potential, especially as three warning signs surrounding the company have been identified.
For those considering SkyWater Technology, assessing risks remains essential amid these mixed signals and evolving expectations.
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