Amkor Shares Plunge 11% Due to Earnings Miss and Weak Guidance

TEMPE, Ariz. - Semiconductor packaging and testing services provider Amkor Technology (NASDAQ:AMKR) saw its stock drop by 11.95% in after-hours trading on Monday following the announcement of third-quarter earnings that fell short of expectations, along with weaker-than-expected guidance.

Amkor reported adjusted earnings of $0.49 per share for the third quarter, which was below analyst consensus estimates. Revenue came in at $1.86 billion, reflecting a 27% increase sequentially and a 2.2% increase compared to the same period last year.

While the company indicated that strong demand for Advanced SiP technology in its Communications and Consumer end markets supported sequential revenue growth, the failure to meet earnings expectations and the outlook disappointed investors.

For the fourth quarter, Amkor is projecting revenue between $1.60 billion and $1.70 billion, with earnings ranging from $0.28 to $0.44 per share. The midpoint of this guidance range falls below current analyst expectations.

Amkor's President and CEO Giel Rutten stated, "Throughout the quarter, we focused on achieving significant production increases for several high-volume products and further strengthening our key partnerships with industry leaders to ensure resilient regional supply chains."

The company's gross margin for the third quarter was 14.6%, remaining relatively stable compared to 14.5% in the previous quarter, but below 15.5% from the same period last year.

Amkor maintained its capital expenditure forecast of approximately $750 million for 2024.