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Investing.com - Mizuho (NYSE:MFG) has reduced its price target on Skyworks Solutions (NASDAQ:SWKS) to $70.00 from $75.00 while maintaining a Neutral rating on the stock. Currently trading at $67.63, InvestingPro analysis suggests the stock is undervalued, with a strong free cash flow yield of 13%.
The semiconductor company reported its June quarter results and provided September quarter guidance of $1.02 billion, exceeding consensus estimates of $883 million and representing a 5% quarter-over-quarter increase. Despite the positive guidance, revenue has declined 12.9% over the last twelve months, though the company maintains a robust financial health score of "GOOD" according to InvestingPro metrics.
Skyworks expects its Handsets segment to grow mid-single digits quarter-over-quarter, driven by iPhone 17 ramps and strong content in Google (NASDAQ:GOOGL) Android devices, while its Broad Markets segment is also projected to increase quarter-over-quarter with growth in automotive, WiFi7, and timing solutions.
The company faces headwinds as Apple (NASDAQ:AAPL), which represented approximately 63% of June quarter revenue, may experience sales pressure from higher iPhone 17 pricing, with Mizuho estimating Skyworks will see a 20-25% year-over-year decline in iPhone content compared to iPhone 16.
Gross margins are guided slightly lower quarter-over-quarter due to a higher iPhone mix, though Mizuho noted potential future content opportunities in iPhone 18/19 models with higher internal modem mix.
In other recent news, Skyworks Solutions Inc . reported robust financial results for the third quarter of fiscal year 2025, exceeding both earnings and revenue expectations. The company’s earnings per share reached $1.33, surpassing the forecasted $1.24, resulting in a 7.26% surprise. Additionally, Skyworks reported revenue of $965 million, which was above the anticipated $940.85 million. These results highlight the company’s strong performance and have been well-received by investors. The announcement of these figures was followed by a positive response in after-hours trading. Analysts have taken note of Skyworks’ performance, with some firms likely to update their outlook based on these results. These developments underscore the company’s current financial health and market position.
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