What happened
Shares of semiconductor packaging and test services company Amkor Technology (AMKR +0.45%) fell as much as 11.6% on Tuesday following the company's second-quarter earnings release. The stock closed the trading day down about 8.5%.
So what
For its second quarter, Amkor reported earnings per share of $0.48 on revenue of $989 million. Adjusted for the sale of its K1 factory in Korea during the quarter, Amkor's earnings per share was $0.14.
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The company's mixed results, when compared to analysts' expectations, may be one reason the stock sold off on Tuesday. Though Amkor's adjusted earnings per share (EPS) of $0.14 was $0.02 above analysts' consensus estimate for the quarter, revenue was notably below a consensus analyst estimate for $996 million.
But Amkor's outlook was also weaker than expected. For its third quarter, management said it anticipates revenue to be between $1.04 billion and $1.12 billion and EPS to be between $0.10 and $0.27. On average, analysts expected third-quarter revenue and EPS of $1.16 billion and $0.32, respectively.
Now what
Going forward, Amkor management expects revenue to rise 9% in Q3 2017 compared to Q 2017. Amkor CEO Steve Kelley cited Amkor's launch of flagship mobile devices as the reason for the expected increase.
Notably, Amkor's forecast for 9% sequential revenue growth in its third quarter marks an acceleration from Amkor's 8% sequential revenue growth in Q2.
