SkyWater Technology (NASDAQ:SKYT) Announces Quarterly Earnings Results

Key Points

• SkyWater Technology reported quarterly EPS of ($0.25), missing analysts’ estimate of ($0.08), even as revenue came in at $160.69 million, above the consensus forecast of $146.31 million.
• At the company’s special meeting, stockholders approved the merger agreement with IonQ by a majority of outstanding shares, and the adjournment proposal became unnecessary after that vote passed.
• The meeting had a quorum with about 67% of eligible shares represented, and SkyWater said the final voting results will be filed with the SEC on Form 8-K in the coming days.

SkyWater Technology (NASDAQ:SKYT - Get Free Report) released its quarterly earnings results on Friday. The company reported ($0.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.17), FiscalAI reports. The company had revenue of $160.69 million for the quarter, compared to the consensus estimate of $146.31 million. SkyWater Technology had a net margin of 26.90% and a negative return on equity of 6.89%.

Here are the key takeaways from SkyWater Technology's conference call:

• Stockholders approved the agreement and plan of merger involving IonQ and SkyWater, with the proposal receiving the affirmative vote of at least a majority of all shares outstanding.
• The company said the merger-adoption proposal was the only material item requiring a vote, while the separate proposal to adjourn the meeting became unnecessary after the merger vote passed.
• The special meeting had a quorum, with approximately 67% of shares entitled to vote represented in person or by proxy.
• Management said the final voting results will be reported in a Form 8-K filing with the SEC in the next few days.

SkyWater Technology Stock Performance

NASDAQ:SKYT traded up $0.66 during trading hours on Friday, reaching $33.72. The stock had a trading volume of 706,871 shares, compared to its average volume of 1,789,453. SkyWater Technology has a 12-month low of $7.46 and a 12-month high of $36.27. The stock has a 50 day simple moving average of $29.80 and a 200 day simple moving average of $25.06. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.52 and a current ratio of 0.60. The stock has a market cap of $1.66 billion, a P/E ratio of 13.88 and a beta of 3.30.

Analyst Ratings Changes

A number of brokerages recently commented on SKYT. Zacks Research raised SkyWater Technology from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Craig Hallum downgraded SkyWater Technology from a "buy" rating to a "hold" rating and set a $35.00 target price for the company. in a research report on Tuesday, January 27th. Needham & Company LLC downgraded SkyWater Technology from a "buy" rating to a "hold" rating in a research report on Monday, January 26th. Piper Sandler downgraded SkyWater Technology from an "overweight" rating to a "neutral" rating and raised their target price for the stock from $17.00 to $35.00 in a research report on Monday, January 26th. Finally, TD Cowen downgraded SkyWater Technology from a "buy" rating to a "hold" rating and raised their target price for the stock from $24.00 to $35.00 in a research report on Tuesday, January 27th. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $32.00.

Insider Activity at SkyWater Technology

In other news, CFO Steve Manko sold 91,109 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $27.84, for a total value of $2,536,474.56. Following the completion of the transaction, the chief financial officer directly owned 215,166 shares of the company's stock, valued at $5,990,221.44. This trade represents a 29.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 37.85% of the stock is owned by insiders.

Hedge Funds Weigh In On SkyWater Technology

A number of large investors have recently made changes to their positions in the stock. Inspire Investing LLC boosted its holdings in shares of SkyWater Technology by 2.5% in the fourth quarter. Inspire Investing LLC now owns 25,460 shares of the company's stock worth $462,000 after acquiring an additional 612 shares during the period. BNP Paribas Financial Markets boosted its holdings in shares of SkyWater Technology by 56.4% in the second quarter. BNP Paribas Financial Markets now owns 2,749 shares of the company's stock worth $27,000 after acquiring an additional 991 shares during the period. NewEdge Advisors LLC boosted its holdings in shares of SkyWater Technology by 10.7% in the third quarter. NewEdge Advisors LLC now owns 10,350 shares of the company's stock worth $193,000 after acquiring an additional 1,000 shares during the period. Quarry LP bought a new position in shares of SkyWater Technology in the fourth quarter worth $25,000. Finally, State of Wyoming bought a new position in shares of SkyWater Technology in the fourth quarter worth $35,000. 70.00% of the stock is owned by institutional investors.

About SkyWater Technology

SkyWater Technology Solutions, Inc is a U.S.-based specialty semiconductor foundry headquartered in Bloomington, Minnesota. The company focuses on the development and manufacture of high-reliability integrated circuits using advanced processes on 200-millimeter wafers.

SkyWater's service offerings span analog/mixed-signal, radio frequency (RF), micro-electromechanical systems (MEMS) and advanced packaging technologies. Its turnkey model includes multi-project wafer (MPW) runs, volume production, design enablement support and assembly and test services, enabling customers to take concepts from prototype to market.

Serving aerospace, defense, automotive, industrial, medical and communications sectors, SkyWater supports applications that demand rigorous performance, quality and traceability.

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