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What's in the Offing for Amkor (AMKR) This Earnings Season?
AMKRAmkor Technology(AMKR) ZACKS·2024-07-26 13:27

Core Insights - Amkor Technology, Inc. is set to report its second-quarter 2024 results on July 29, with revenue expectations between 1.4billionand1.4 billion and 1.5 billion, slightly lower than the previous year's 1.46billion[1]−Thecompanyanticipatesearningspershare(EPS)intherangeof14−30cents,withaconsensusestimateof22cents,reflectinga15.41.46 billion [1] - The company anticipates earnings per share (EPS) in the range of 14-30 cents, with a consensus estimate of 22 cents, reflecting a 15.4% decline from the prior year's 26 cents [1] - Amkor has consistently beaten earnings estimates in the past four quarters, with an average surprise of 44.3% [1] Revenue Drivers - The second-quarter performance is expected to benefit from production ramps for new products, particularly in advanced SAP technology and 2.5D technology, driven by demand in the IoT wearables market [2] - AI-enabled product introductions by PC vendors are likely to enhance demand for Amkor's 2.5D advanced packaging technology, positively impacting revenues from the Computing end market [2] Segment Performance - The Communications business segment is projected to see sales growth due to improved demand in the Android supply chain and NAND memory, alongside increased smartphone sales [3] - The introduction of AI in edge devices, such as smartphones, is expected to drive demand for advanced packaging solutions, where Amkor has a strong market position [3] - However, the Automotive and Industrial market is anticipated to negatively impact overall performance due to inventory control measures by customers, with a reported 22% revenue decline in the first quarter [3] Cost Considerations - Amkor's bottom-line performance may be adversely affected by rising operating expenses, projected at approximately 135 million for the second quarter, a 22% increase from $110.5 million in the previous year, primarily due to costs associated with a new factory in Vietnam [4] Earnings Prediction Model - The current model does not predict a definitive earnings beat for Amkor, as it holds a Zacks Rank of 3 and an Earnings ESP of -1.49% [5]