SkyWater Set to Report Earnings in Q1: What's in the Offing?

SkyWater Technology SKYT is scheduled to report first-quarter 2025 results on May 7.

SKYT expects total revenues between $59 million and $63 million for the first quarter, of which $1 million is expected to be tool revenues, and $6 million is likely to be Wafer Services revenues.

The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $61.05 million, suggesting a 23.3% year-over-year decline.

Non-GAAP earnings are expected to be 10-16 cents per share for the first quarter of 2025.

SkyWater Technology, Inc. Price and EPS Surprise

 

SkyWater Technology, Inc. price-eps-surprise | SkyWater Technology, Inc. Quote

The consensus mark for the first-quarter 2025 bottom line is pegged at a loss of 13 cents per share, unchanged over the past 30 days. This indicates a wider loss from the year-ago quarter's loss of 8 cents.

SkyWater’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 179.29%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of SKYT’s Q1 Results

SkyWater is expected to have seen a boost in its first-quarter 2025 results from improved wafer services revenues. This uptick is likely to have resulted from continued product innovation and strategic conversions from Advanced Technology Services (ATS) to wafer services, highlighting SkyWater’s efforts to diversify its revenue base and strengthen operational efficiency.

SKYT is expected to have benefited in the first quarter of 2025 from early traction with ThermaView solutions, reflecting strong momentum across growth initiatives. Supported by Raytheon Vision Systems, this initiative positions SkyWater to capitalize on the growing demand in defense, industrial and healthcare markets.

Momentum around the Fab 25 acquisition is expected to have positively impacted the first quarter of 2025, as the 200mm fab is projected to add $300 million in annual wafer service revenues and significantly expand SkyWater’s domestic manufacturing capacity. This momentum is expected to have translated into stronger customer confidence, early-stage operational gains and a meaningful boost to the quarter under review.

However, growing uncertainty over the U.S. federal government budget and extended negotiations are expected to have affected SkyWater’s first-quarter 2025 performance, with delays or reductions in ATS revenues.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

SkyWater currently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Affirm AFRM has an Earnings ESP of +63.27% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM is set to report third-quarter fiscal 2025 results on May 8. The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 8 cents per share, unchanged over the past 30 days and suggesting a narrower loss than the 43 cents incurred in the year-ago quarter.

Compass COMP currently has an Earnings ESP of +21.05% and a Zacks Rank #2.

COMP is scheduled to release first-quarter 2025 results on May 8. The Zacks Consensus Estimate for first-quarter 2025 loss is pegged at 6 cents per share, unchanged over the past 30 days. This also marks a sharp improvement from the year-ago quarter's loss of 27 cents.

Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank #2 at present.

BIDU is set to report first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share, up 9.5% over the past 30 days. The estimate indicates a year-over-year decline of 28.99%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research