Why ChipMOS Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ChipMOS Technologies  (Nasdaq: IMOS  ) have plunged today by as much as 12% after the company reported third-quarter earnings and predicted a soft fourth quarter.

So what: Revenue came in at $175.5 million, a sequential increase of 6.4% over the second quarter and a jump of 15.2% from a year ago. That was mostly in-line with the company's prior guidance for sequential growth between 4% and 8%. Gross margin should be 18.5%, higher than previously expected.

Now what: Next quarter will be challenging, with revenue predicted to be either flat or down 5% sequentially. The company's LCD driver and flash memory businesses are growing, but that merely offsets difficulties in its commoditized DRAM assembly business tied to the broader memory market. Gross margin next quarter should be between 14% and 19%.

Interested in more info on ChipMOS? Add it to your watchlist by clicking here.


Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2058016, ~/Articles/ArticleHandler.aspx, 10/26/2016 11:22:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,228.30 59.03 0.32%
S&P 500 2,144.28 1.12 0.05%
NASD 5,279.23 -4.17 -0.08%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 10:58 AM
IMOS $19.30 Down -0.15 -0.77%
ChipMOS Technologi… CAPS Rating: ***