Shares in Amkor Technology (AMKR) are advancing almost 5% in Tuesday’s early afternoon trading as the company posted better-than-expected 2Q earnings. Its earnings of $0.23 per share improved from a loss of $0.04 in the year-ago quarter. Analysts had expected a loss of $0.03 per share. Higher revenues and improved margins cushioned its 2Q bottom line.
Second-quarter revenues grew 31% to $1.17 billion year-over-year and beat Street estimates of $1.05 billion. Solid demand for advanced packaging technologies in the consumer market mainly drove the top line during the reported quarter.
“Broad based demand drove revenue well above the high end of expectations,” Amkor’s CEO, Giel Rutten said. “The strategic investments we made in both advanced packaging technology and manufacturing capacity enabled significant growth in revenue and profitability.”
Looking ahead, Amkor anticipates third-quarter revenues to be in the range of $1.2 billion and $1.3 billion, implying 11%-20% growth year-on-year. Earnings are forecast to be in the range of 17-35 cents per share.
Following the financial results, Deutsche Bank analyst Sidney Ho raised the price target to $14 from $11 but maintained a Hold rating.
Overall, AMKR has a Moderate Sell analyst consensus. With its shares up about 9% this year, the $11.60 average price target implies 18% downside potential in the coming 12 months. (See AMKR stock analysis on TipRanks).
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