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Amkor shares rise 7% on Q1 earnings beat, upbeat Q2 guidance

EditorRachael Rajan
Published 2024-04-29, 05:00 p/m
© Reuters.
AMKR
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TEMPE, Ariz. - Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), a prominent semiconductor packaging and test services provider, reported first-quarter earnings that exceeded analysts' expectations and a revenue outlook that beat the consensus estimates for the second quarter of 2024. The company's shares jumped over 7% in after-hours trading in response to the positive guidance.

For the first quarter ended March 31, 2024, Amkor posted earnings of $0.24 per share, which was $0.13 above the analyst estimate of $0.11. The company's revenue reached $1.37 billion, aligning with the consensus estimate of $1.36 billion and marking a 7.2% decline from the $1.47 billion reported in the same quarter last year.

Amkor's president and CEO, Giel Rutten, characterized the first quarter as the trough for the company's revenue and utilization, citing industry challenges. Despite this, the company continued its expansion efforts, notably in 2.5D capacity to boost AI device output, and forged key partnerships to strengthen the European semiconductor supply chain. Additionally, Amkor advanced plans for its new packaging and test facility in Arizona and is gearing up for a production ramp in its Vietnam factory later in the year.

Looking ahead, Amkor provided an optimistic outlook for the second quarter of 2024, projecting earnings in the range of $0.14 to $0.30 per share, with the midpoint exceeding the analyst consensus of $0.18. Revenue is expected to be between $1.4 billion and $1.5 billion, surpassing the consensus estimate of $1.39 billion.

The company's financial position remains robust, with $1.6 billion in total cash and short-term investments and a manageable debt level of $1.2 billion as of March 31, 2024. Amkor also maintained its commitment to shareholder returns, declaring a quarterly dividend of $0.07875 per share on April 1, 2024.

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