Amkor Technology, Inc. | $AMKR Stock | Shares Spike Up On Better Than Expected Earnings Numbers


Amkor Technology, Inc. (NASDAQ: AMKR)



Amkor Technology, Inc. (AMKR), a global semiconductor packaging and test services company yesterday reported their second quarter 2016 financial results. Amkor reported second quarter earnings of $0.02 per share which beat analyst expectations of a loss of $0.08 per share. Amkor reported second quarter revenues of $917 million which beat analyst expectations of $867.3 million.


Amkor Technology, Inc. CEO’s Comments

“Second quarter results were above the high end of our guidance,” said Steve Kelley, Amkor’s president and chief executive officer. “Strong Android smartphone demand and a quicker recovery at our earthquake-damaged Kumamoto factory were the key drivers of our financial performance for the quarter. Our growth in sequential sales also drove an 8.1% improvement in EBITDA.”

“We incurred approximately $13 million of incremental earthquake costs that reduced gross margin by 150 basis points and earnings per diluted share by $0.04,” said Joanne Solomon, Amkor’s executive vice president and chief financial officer. “Taking into account insurance payments anticipated later this year, we expect the net impact of the Japan earthquakes on our full year 2016 results to be minimal.” “Looking ahead to Q3, we expect that revenues will increase around 15% sequentially, driven by the launch of mobile devices across multiple tiers. We expect robust growth in advanced SiP, Greater China and automotive,” said Kelley.   Business Wire


AMKR Technical Analysis

Amkor Technology

AMKR opened trading yesterday at $6.28 which was down from the previous days trading of $6.29. AMKR closed trading yesterday at $6.45 and spiked up after market to $7.30, equivalent to a 13% increase from the closing price. Taking a look at the daily chart we can see the last time AMKR traded above these levels was on April 28th, 2015 when it traded at $7.46. Taking a closer look at the daily chart we can see that AMKR has been in an upward trend dating back to June 27th when it traded at $5.37. AMKR has a float of 124.80 million shares and traded 1.70 times the normal daily trading volume on Monday. For trading purposes, I would like to see AMKR open trading on Tuesday above $7.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer backgrinds, package design, packaging, and test and drop shipment services. Its packages employ wirebond, flip chip, and copper clip interconnect technologies. The company also provides semiconductor testing services, such as wafer testing or probe, and final test services; flip chip chip scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory, and as applications processors in mobile devices; flip chip ball grid array (BGA) products for various networking, storage, computing, and consumer applications; and flip chip molded BGA packages. In addition, it offers leadframe packages that are used in electronic devices for low to medium pin count applications; substrate-based wirebond packages that are used to connect a die to a substrate; micro-electro-mechanical systems packages that are miniaturized mechanical and electro-mechanical devices; and system-in-package modules, which are used in RF and front end modules, baseband processing, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid state drives. The company primarily serves integrated device manufacturers, fabless semiconductor companies, and contract foundries, as well as communications, consumer, networking, computing, and automotive and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.  Yahoo Finance