The 10-second takeaway
For the quarter ended June 30 (Q2), Amkor Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Margins expanded across the board.
Amkor Technology recorded revenue of $746.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $754.5 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $686.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.18. The four earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.18 for Q2 were 20% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.14 for Q2 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 18.5%, 550 basis points better than the prior-year quarter. Operating margin was 7.8%, 460 basis points better than the prior-year quarter. Net margin was 4.0%, 390 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $737.0 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $0.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 303 members out of 326 rating the stock outperform, and 23 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Amkor Technology a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amkor Technology is outperform, with an average price target of $5.50.
Is Amkor Technology your best play in technology? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Amkor Technology to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. 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.