Bear Of The Day: Amkor Technology (AMKR)

Core Viewpoint - Amkor Technology (AMKR) is currently rated as a Zacks Rank 5 (Strong Sell) due to a recent earnings miss and soft guidance, indicating potential challenges in the semiconductor packaging and testing services sector [1]. Company Overview - Amkor Technology, Inc. provides outsourced semiconductor packaging and test services, including design, package characterization, test, and wafer bumping services. The company was founded in 1968 and is headquartered in Tempe, AZ [2]. Earnings History - Over the past year, Amkor Technology has had three earnings beats and one miss against the Zacks Consensus Estimate. The most recent quarter reported earnings of $0.49, missing the consensus estimate of$0.50. This performance alone does not justify a Zacks Rank 1 (Strong Buy) or a Zacks Rank 5 (Strong Sell) [4]. - The company has guided earnings per share (EPS) for the next quarter to a range of $0.28 -$0.44, while the consensus was expecting EPS of $0.55 [4]. Earnings Estimates - Recent trends show a decline in earnings estimates for Amkor Technology. The current fiscal year consensus estimate has decreased from$1.54 to $1.42 over the last 60 days. For the next fiscal year, estimates have dropped from$2.29 to $1.97 during the same period [6]. - The negative movement in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6]. Market Context - It is noteworthy that many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [7].