Latest news with #AmkorTechnologies
Yahoo
29-04-2025
- Business
- Yahoo
Amkor (NASDAQ:AMKR) Beats Expectations in Strong Q1, Guides for Strong Sales Next Quarter
Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 3.2% year on year to $1.32 billion. On top of that, next quarter's revenue guidance ($1.43 billion at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its GAAP profit of $0.09 per share was in line with analysts' consensus estimates. Is now the time to buy Amkor? Find out in our full research report. Revenue: $1.32 billion vs analyst estimates of $1.28 billion (3.2% year-on-year decline, 3.6% beat) EPS (GAAP): $0.09 vs analyst estimates of $0.09 (in line) Adjusted EBITDA: $197 million vs analyst estimates of $186 million (14.9% margin, 5.9% beat) Revenue Guidance for Q2 CY2025 is $1.43 billion at the midpoint, above analyst estimates of $1.35 billion EPS (GAAP) guidance for Q2 CY2025 is $0.15 at the midpoint, missing analyst estimates by 5.5% Operating Margin: 2.4%, down from 5.4% in the same quarter last year Free Cash Flow was -$55.75 million, down from $66.14 million in the same quarter last year Inventory Days Outstanding: 26, up from 20 in the previous quarter Market Capitalization: $4.34 billion Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Amkor's 7.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Amkor's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.1% over the last two years. This quarter, Amkor's revenue fell by 3.2% year on year to $1.32 billion but beat Wall Street's estimates by 3.6%. Despite the beat, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 2.5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.9% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Amkor's DIO came in at 26, which is 5 days below its five-year average. These numbers show that despite the recent increase, there's no indication of an excessive inventory buildup. It was great to see Amkor's revenue guidance for next quarter top analysts' expectations. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its inventory levels materially increased. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 2.2% to $17.86 immediately after reporting. Amkor may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
Amkor (NASDAQ:AMKR) Beats Expectations in Strong Q1, Guides for Strong Sales Next Quarter
Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 3.2% year on year to $1.32 billion. On top of that, next quarter's revenue guidance ($1.43 billion at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its GAAP profit of $0.09 per share was in line with analysts' consensus estimates. Is now the time to buy Amkor? Find out in our full research report. Revenue: $1.32 billion vs analyst estimates of $1.28 billion (3.2% year-on-year decline, 3.6% beat) EPS (GAAP): $0.09 vs analyst estimates of $0.09 (in line) Adjusted EBITDA: $197 million vs analyst estimates of $186 million (14.9% margin, 5.9% beat) Revenue Guidance for Q2 CY2025 is $1.43 billion at the midpoint, above analyst estimates of $1.35 billion EPS (GAAP) guidance for Q2 CY2025 is $0.15 at the midpoint, missing analyst estimates by 5.5% Operating Margin: 2.4%, down from 5.4% in the same quarter last year Free Cash Flow was -$55.75 million, down from $66.14 million in the same quarter last year Inventory Days Outstanding: 26, up from 20 in the previous quarter Market Capitalization: $4.34 billion Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Amkor's 7.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Amkor's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.1% over the last two years. This quarter, Amkor's revenue fell by 3.2% year on year to $1.32 billion but beat Wall Street's estimates by 3.6%. Despite the beat, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 2.5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.9% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Amkor's DIO came in at 26, which is 5 days below its five-year average. These numbers show that despite the recent increase, there's no indication of an excessive inventory buildup. It was great to see Amkor's revenue guidance for next quarter top analysts' expectations. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its inventory levels materially increased. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 2.2% to $17.86 immediately after reporting. Amkor may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
07-04-2025
- Business
- Yahoo
3 Reasons AMKR is Risky and 1 Stock to Buy Instead
Amkor's stock price has taken a beating over the past six months, shedding 53.1% of its value and falling to a new 52-week low of $14.11 per share. This might have investors contemplating their next move. Is now the time to buy Amkor, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it's free. Despite the more favorable entry price, we're cautious about Amkor. Here are three reasons why you should be careful with AMKR and a stock we'd rather own. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Amkor's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.6% over the last two years. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Amkor's revenue to stall. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. In the semiconductor industry, a company's gross profit margin is a critical metric to track because it sheds light on its pricing power, complexity of products, and ability to procure raw materials, equipment, and labor. Amkor's gross margin is one of the worst in the semiconductor industry, signaling it operates in a competitive market and lacks pricing power. As you can see below, it averaged a 14.6% gross margin over the last two years. That means Amkor paid its suppliers a lot of money ($85.36 for every $100 in revenue) to run its business. We see the value of companies furthering technological innovation, but in the case of Amkor, we're out. Following the recent decline, the stock trades at 7.3× forward price-to-earnings (or $14.11 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. We'd recommend looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
Amkor (NASDAQ:AMKR) Misses Q4 Analysts' Revenue Estimates, Stock Drops
Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) fell short of the market's revenue expectations in Q4 CY2024, with sales falling 7% year on year to $1.63 billion. Next quarter's revenue guidance of $1.28 billion underwhelmed, coming in 14.1% below analysts' estimates. Its GAAP profit of $0.43 per share was 16.2% above analysts' consensus estimates. Is now the time to buy Amkor? Find out in our full research report. Revenue: $1.63 billion vs analyst estimates of $1.66 billion (7% year-on-year decline, 2.1% miss) EPS (GAAP): $0.43 vs analyst estimates of $0.37 (16.2% beat) Adjusted EBITDA: $302 million vs analyst estimates of $287.2 million (18.5% margin, 5.1% beat) Revenue Guidance for Q1 CY2025 is $1.28 billion at the midpoint, below analyst estimates of $1.48 billion EPS (GAAP) guidance for Q1 CY2025 is $0.09 at the midpoint, missing analyst estimates by 70.6% Operating Margin: 8.3%, in line with the same quarter last year Free Cash Flow Margin: 22%, up from 19.2% in the same quarter last year Inventory Days Outstanding: 20, in line with the previous quarter Market Capitalization: $6.00 billion 'In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,' said Giel Rutten, Amkor's president and chief executive officer. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Amkor's 9.3% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Amkor's recent history marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.6% over the last two years. This quarter, Amkor missed Wall Street's estimates and reported a rather uninspiring 7% year-on-year revenue decline, generating $1.63 billion of revenue. Company management is currently guiding for a 6.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and implies its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Amkor's DIO came in at 20, which is 10 days below its five-year average. Flat versus last quarter, there's no indication of an excessive inventory buildup. We were impressed by how significantly Amkor blew past analysts' EPS expectations this quarter. On the other hand, its revenue guidance for next quarter missed significantly and its revenue fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 7.6% to $22.51 immediately following the results. Amkor underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
