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Amkor shares plunge 11% on earnings miss, weak guidance

EditorRachael Rajan
Published 10/29/2024, 04:20 AM
© Reuters.
AMKR
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TEMPE, Ariz. - Shares of Amkor Technology (NASDAQ:AMKR) plunged 11.95% in after-hours trading Monday after the semiconductor packaging and test services provider reported third-quarter earnings that missed expectations and issued weaker-than-anticipated guidance.

Amkor posted adjusted earnings per share of $0.49 for the third quarter, falling short of the analyst consensus estimate. Revenue came in at $1.86 billion, up 27% sequentially and 2.2% YoY.

While the company saw strong demand for its Advanced SiP technology in the Communications and Consumer end markets, driving the sequential revenue growth, the earnings miss and outlook disappointed investors.

For the fourth quarter, Amkor forecasts revenue between $1.60 billion to $1.70 billion and earnings per share of $0.28 to $0.44. The midpoint of this guidance range falls below current analyst expectations.

"During the quarter we focused on executing steep production ramps for several high-volume products and further strengthened key partnerships with leaders in the industry to ensure resilient regional supply chains," said Giel Rutten, Amkor's president and CEO.

The company's gross margin for Q3 was 14.6%, relatively flat compared to 14.5% in the previous quarter but down from 15.5% in the same period last year.

Amkor maintained its full-year 2024 capital expenditure forecast at approximately $750 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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