The analysts covering SkyWater Technology, Inc. (NASDAQ:SKYT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the four analysts covering SkyWater Technology provided consensus estimates of US$329m revenue in 2025, which would reflect a small 4.9% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$378m in 2025. The consensus view seems to have become more pessimistic on SkyWater Technology, noting the measurable cut to revenue estimates in this update.

View our latest analysis for SkyWater Technology

We'd point out that there was no major changes to their price target of US$11.88, suggesting the latest estimates were not enough to shift their view on the value of the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SkyWater Technology's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.9% by the end of 2025. This indicates a significant reduction from annual growth of 23% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SkyWater Technology is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for SkyWater Technology next year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on SkyWater Technology after today.

Of course, there's always more to the story. We have estimates for SkyWater Technology from its four analysts out until 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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