Amkor Tech (AMKR) Earnings Preview: What to Expect on October 28th

Amkor Tech (AMKR) Earnings Preview: What to Expect on October 28th

Amkor Tech, a leading provider of outsourced semiconductor packaging and test services, is gearing up to announce its quarterly earnings on Monday, October 28th. Investors are eagerly anticipating the release, looking for signs of strong performance and positive guidance for the upcoming quarter.

Analyst Expectations and Past Performance

Analysts are forecasting an earnings per share (EPS) of $0.50 for the quarter. This follows a trend of Amkor Tech exceeding expectations in recent quarters. In the last quarter, the company beat EPS estimates by $0.04, though this was followed by a 18.86% drop in the share price the next day. This highlights the importance of not just earnings announcements, but also the company’s guidance for future performance, which can heavily influence stock price movements.

Here’s a look at Amkor Tech’s recent performance:

| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.23 | 0.27 | -19.0% |
| Q1 2024 | 0.11 | 0.24 | 3.0% |
| Q4 2023 | 0.41 | 0.48 | -5.0% |
| Q3 2023 | 0.53 | 0.54 | 2.0% |

As of October 24th, shares of Amkor Tech were trading at $29.37. Over the last 52 weeks, the stock has seen a positive return of 46.48%, which should be encouraging for long-term shareholders.

Analyst Sentiment and Market Positioning

Understanding market sentiment and expectations is crucial for investors. Amkor Tech has received a total of 2 ratings from analysts, with a consensus rating of

Buy

. The average one-year price target is $41.5, suggesting a potential 41.3% upside.

To get a broader perspective, let’s compare Amkor Tech’s analyst ratings and price targets with its peers in the industry:

| Company | Consensus | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| Amkor Tech | Buy | $41.5 | 41.3% |
| MKS Instruments | Neutral | $133.89 | 355.87% |
| Onto Innovation | Outperform | $255.0 | 768.23% |
| Enphase Energy | Neutral | $102.83 | 250.12% |

Key Takeaways from Peer Analysis

– While Amkor Tech boasts a

Buy

consensus rating, it’s worth noting that its potential upside is lower than its peers, particularly Onto Innovation, which has an

Outperform

rating.
– Amkor Tech ranks highest in

Gross Profit

and

Return on Equity

among its peers, suggesting strong profitability and efficient use of equity capital.
– However, Amkor Tech lags behind in

Revenue Growth

compared to its peers, indicating a need to further expand its market presence.

Diving Deeper into Amkor Tech’s Business

Amkor Technology Inc. specializes in outsourced semiconductor packaging and test services for a wide range of clients, including integrated device manufacturers, fabless semiconductor companies, and contract foundries. The company’s products fall into two main categories:

–

Advanced Products:

These include flip chip, fine pitch bumping, wafer-level processing, advanced SiPs, power modules, and others.
–

Mainstream Products:

These include wirebond packaging and testing.

The company derives the majority of its revenue from the advanced products category and primarily generates revenue from international markets.

Financial Highlights: A Closer Look at Amkor Tech’s Performance

–

Market Capitalization:

Amkor Tech’s market capitalization falls below industry averages, suggesting a smaller size compared to its peers. This could be attributed to factors such as perceived growth potential or operational scale.
–

Revenue Growth:

Over the past 3 months, Amkor Tech achieved a 0.24% revenue growth rate as of June 30th, 2024, indicating positive growth in top-line earnings. However, this growth lags behind its peers in the Information Technology sector.
–

Net Margin:

Amkor Tech’s net margin is below industry benchmarks at 4.58%. This suggests potential difficulties in achieving strong profitability and the need to address cost management strategies.
–

Return on Equity (ROE):

Amkor Tech’s ROE stands at 1.66%, below industry standards. This indicates challenges in efficiently utilizing equity capital to generate returns for shareholders.
–

Return on Assets (ROA):

Similar to ROE, Amkor Tech’s ROA of 0.99% is below industry standards, indicating difficulties in efficiently using assets to deliver strong returns.
–

Debt Management:

Amkor Tech exhibits a prudent financial strategy with a below-average debt-to-equity ratio of 0.31, demonstrating a balanced approach to debt management.

Looking Ahead: What to Watch for

Amkor Tech’s upcoming earnings announcement will be a crucial event for investors. Key areas to watch include:

–

Earnings Per Share (EPS):

Will the company exceed analysts’ expectations of $0.50?
–

Guidance for Future Quarters:

What is Amkor Tech’s outlook for the remainder of the year?
–

Revenue Growth:

Can the company accelerate its revenue growth to match or surpass its peers?
–

Profitability:

Will the company demonstrate improvements in net margin, ROE, and ROA?

Stay tuned for Amkor Tech’s earnings announcement on October 28th and for further analysis of the company’s performance and its implications for investors.