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On Thursday, KeyBanc Capital Markets maintained its Sector Weight rating on Skyworks Solutions (NASDAQ:SWKS) without altering the price target. The firm’s decision came after the company reported earnings and guidance that met market expectations. According to InvestingPro data, Skyworks currently trades near its 52-week low of $82.13, with a P/E ratio of 23.4x and maintains a strong financial health score. However, management revealed that Skyworks is expected to lose a significant share in the upcoming iPhone 17 production. The company will be dual-sourced on the device, particularly on the DRX socket, which is anticipated to be partially compensated by increased content on models featuring Apple (NASDAQ:AAPL)’s internal modem. Despite this, overall content is projected to decline by 20-25% compared to the iPhone 16. This news comes as Skyworks faces broader revenue challenges, with InvestingPro showing a 12.5% decline in revenue over the last twelve months. For deeper insights into Skyworks’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In light of these developments, Skyworks Solutions has announced a change in leadership. CEO Liam Griffin is set to step down and will be succeeded by Philip Brace. This transition comes as the company plans to continue its investments in an effort to regain share in the iPhone 18 cycle. Despite current challenges, InvestingPro Tips highlight that Skyworks operates with moderate debt levels and maintains strong liquid assets exceeding short-term obligations. There are 6 additional valuable insights available on InvestingPro.
KeyBanc has adjusted its estimates for Skyworks Solutions following the announcement of the expected decrease in content share for the next iPhone iteration. The firm’s analyst noted that while the current results align with expectations, the loss in market share for a key product like the iPhone 17 presents a challenge for Skyworks.
The change in CEO alongside the company’s strategy to recapture market share in future iPhone models are significant moves for Skyworks Solutions. The firm’s stance remains unchanged at Sector Weight as it observes how these strategies will unfold and impact the company’s financial performance in the coming periods.
In other recent news, semiconductor company Skyworks Solutions has been the focus of multiple analyst reports following significant changes in its business operations. Needham maintained a Hold rating on Skyworks, citing upcoming changes in its business with Apple. The company confirmed a reduction in its content in the next-generation iPhone 17 by about 20-25%, potentially reducing Mobile revenue by over $380 million year-over-year. Skyworks plans to increase operating expenses through FY26, with growth expected in its Broad Markets segment.
In a leadership transition, CEO Liam Griffin will be succeeded by Philip Brace, and the board has authorized a new share repurchase agreement. Goldman Sachs revised Skyworks’ price target to $70 and maintained a Neutral rating, highlighting concerns about the company’s reliance on a single major customer. Citi analysts also adjusted their outlook, reducing the price target to $118 but maintaining a Buy rating, despite slower-than-anticipated guidance for top-line growth and gross margin expansion.
B.Riley downgraded Skyworks from Buy to Neutral and slashed the price target to $65, following an announcement of a significant share loss at Apple and the unexpected departure of CEO Liam Griffin. Stifel analysts also downgraded shares of Skyworks to Hold and reduced the price target to $62, citing the expected 20-25% content reduction in the upcoming iPhone 17 product set. These are recent developments that have caused analysts to reassess their expectations for Skyworks Solutions.
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