As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the semiconductor manufacturing industry, including Amkor (NASDAQ:AMKR) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but semiconductor manufacturing stocks have exhibited impressive performance, with the share prices up 11.4% on average since the previous earnings results.
Amkor (NASDAQ:AMKR) Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.
Amkor reported revenues of $1.37 billion, down 7.2% year on year, falling short of analysts' expectations by 0.9%. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
“Amkor delivered first quarter results in line with expectations with revenue of $1.37 billion dollars and EPS of $0.24. After a multi-quarter industry downturn, we see the first quarter as the low point for our revenue and utilization,” said Giel Rutten, Amkor’s president and chief executive officer.
The stock is up 24.9% since the results and currently trades at $39.37.
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Best Q1: Lam Research (NASDAQ:LRCX) Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.
Lam Research reported revenues of $3.79 billion, down 2% year on year, outperforming analysts' expectations by 1.7%. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
The stock is up 20.2% since the results and currently trades at $1,062.55.
Kulicke and Soffa (NASDAQ:KLIC) Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Kulicke and Soffa reported revenues of $172.1 million, down 0.5% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is up 6.4% since the results and currently trades at $47.12.
IPG Photonics (NASDAQ:IPGP) Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $252 million, down 27.4% year on year, falling short of analysts' expectations by 0.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
IPG Photonics had the slowest revenue growth among its peers. The stock is down 7.8% since the results and currently trades at $81.68.
KLA Corporation (NASDAQ:KLAC) Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $2.36 billion, down 3% year on year, surpassing analysts' expectations by 1.7%. It was a strong quarter for the company, with a solid beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
The stock is up 21.7% since the results and currently trades at $821.11.
