Published on 11 Nov 2023 on Simply Wall St. via Yahoo Finance

SkyWater Technology, Inc. (NASDAQ:SKYT) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse SkyWater Technology, Inc.'s (NASDAQ:SKYT) business as it appears the company may be on the cusp of a considerable accomplishment. SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development and manufacturing services. With the latest financial year loss of US$40m and a trailing-twelve-month loss of US$23m, the US$258m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which SkyWater Technology will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for SkyWater Technology

According to the 5 industry analysts covering SkyWater Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$19m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.