What happened

Amkor Technology (NASDAQ:AMKR) stock jumped on Tuesday, rising as much as 20.1%. As of 3:05 p.m. EDT, the stock was up 18.9%. Shares of the semiconductor packaging and test services company rose following its third-quarter earnings release, which featured better-than-expected earnings per share (EPS).

The quarter's solid results reflected "strength in mobile communications," said Amkor CEO Steve Kelley in the company's third-quarter earnings release.

A chart of a stock price moving higher.

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So what

Amkor reported net sales of $1.144 billion, up 7% sequentially and about flat year over year. Earnings per share was $0.24, down from $0.25 in the year-ago quarter but above a consensus analyst estimate for $0.17. Management had guided for third-quarter earnings per share to be between $0.12 and $0.23.

"Better than expected gross profit and EPS were driven primarily by improved operating leverage," said Amkor CFO Megan Faust.

Now what

For Amkor's fourth quarter, management expects net sales between $1.02 billion and $1.1 billion and EPS between $0.02 and $0.14.

Importantly, Faust said the company completed a debt refinancing during the quarter that will save the company $11 million annually in interest payments.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.