SKYWATER TECHNOLOGY, INC.

Recommendation history

• Q1 2025HoldHold: Neogen exited a disrupted year with Q4 revenue of $237 million, 2% core growth, 47.9% gross margin, and $53 million of adjusted EBITDA, but profitability remains materially below prior-year levels. FY2025 guidance calls for $925–$955 million of revenue and $215–$235 million of adjusted EBITDA, with recovery dependent on recapturing constrained sales, improving food-production volumes, and completing Petrifilm manufacturing; the $900 million gross-debt balance limits tolerance for another execution miss.
• Q3 2024HoldNational Fuel delivered a strong quarter: Seneca production rose 16% to 45.6 Bcfe, recurring upstream earnings nearly doubled, and FY2017 EPS guidance increased to $3.20-$3.35 while capex fell to $450-$530 million. However, Northern Access remains delayed until potentially FY2020, and New York’s permit denial and unusually low 8.7% utility ROE undermine the long-term growth case; the stock is a hold rather than a clean buy.
• Q3 2021No clear callHOLD: DXC showed early stabilization, with Q3 revenue of $4.29B, adjusted EBIT margin of 7.0%, and book-to-bill of 1.13, while guiding Q4 revenue to $4.25B-$4.30B and margin to 7.0%-7.4%. The turnaround case rests on renewed bookings, cost cuts, and debt reduction, but organic revenue was still down 10.5% year over year, adjusted free cash flow was negative $318M, and management did not yet quantify FY22 growth or normalized margins.
• Q4 2022HoldHold: Snap delivered exceptional Q2 momentum—revenue rose 116% year over year to $982 million, DAUs grew 23% to 293 million, and adjusted EBITDA reached $117 million—but Q3 revenue growth is guided down to 58%-60% as tougher comparisons and Apple’s IDFA changes emerge. The long-term AR, commerce, and Spotlight opportunities are credible, yet negative $116 million free cash flow, continued heavy investment, and unresolved competition from TikTok and Facebook Reels make this a wait rather than a clean buy after the call.