Last year they made 50 cents/share; cash flow 2.7; selling at book value; done with the major capital expenses to transfer to wireless; PEG is under 1; this is their slowest quarter; they seem to have many new customers and design wins but are in the qualification process and should have some great announcements by next quarter or the end of April; typical sell off in the moment but looking forward I expect we will see upgrades and AMKR will double within 9 months... jmho
It is hard to say where things will wind up.
Normally I don't really believe it when an OSAT provider says things are going to improve a couple of quarters out but this time I do believe them. Maybe the market will too.
They did say they had agreements for some of the new business/markets they'll be entering in H2 2014, but I have to wonder if the analysts buy into the "hope strategy" of planning overall 2014 growth hinging on competing in markets they have only moderate or limited experience in. Given their capital structure and high LTD, I'd think there would be big concerns about risk here. Any longer term holders here that can speak to their ability/confidence in executing in these new products? Basically, I don't like the risk profile, but I'm new to AMKR. Would stick around if I thought they have strengths they can leverage to ensure success in some of these bets they are making - outside of their historical business. If they can fill their underutilized capacity, that will help maintain margins...
i wish i could have sold u my shares.i cant trade after hours.wanted to sell them as soon as i read the results.could have sold them for 5.3 if i was able to.i feel gutted
Guide was weak, but given the chip slowdown it was mostly to be expected. 2H should be much better. I am adding to my position here which I recently re-initiated, for what it's worth.
Evidently no one cares about the new management or the .05 cents earnings beat, only the fact they ramped down 1st quarter projections. From AH action looks like a close below 5 tomorrow!! Damn!!
I didn't think they seemed all that energetic but I tend to just believe that is PR garbage anyway. Didn't seem like a great call one way or the other to me. Too early to judge Kelly but he should be given the benefit of the doubt in my opinion as it isn't like it was a lousy quarter. Guidance was pretty weak but maybe the back half will be exceptionally good.
I was the one doing most of the buying in after-hours. Expect the share price to go to $4 tomorrow now.
Did anyone listen to the conference call. My understanding is the new AMKR management is energetic, sharp and taking this company in the right direction.
I'm new in this stock, but this selloff seems like an over reaction to say the least. Looks like a couple shorts shook the tree AH with a few hundred shares. See what happens tomorrow.
The goal of all IR communications is to ignore the negative and accentuate the positive, not to communicate the performance of the company. Just the nature of the beast.
Guidance is weak for the first quarter. That seems a little disappointing but in the overall scheme of things it isn't the end of the world. They did indicate that they are cutting costs, and that is probably a good thing.
At the end of the day, they really had a pretty good year. $0.58 a share isn't bad given the Tessera litigation impact. 2014 will depend mostly on the economy but they don't appear to be off to a great start. Would be nice if they would report monthly sales and I don't get how come the first quarter is going to be weak but that is the way it goes sometimes.
Compare Q1 FY14 to Q1 FY13. They are forecasting declines.
They indicated a strong second half, whatever that means.
"Historically, the first quarter is our weakest quarter of the year, and 2014 fits that pattern," said Kelley. "We expect that first quarter revenues will be down 11% sequentially, mostly due to seasonality, but also because of continuing weakness in the high-end of the mobile device market. For the full year, we see sequential growth in the second quarter, followed by a strong second half tied to the launch of flagship mobile devices."
Based upon currently available information, we have the following expectations for the first quarter 2014:
Net sales of $650 million to $700 million, down 7% to 14% from the prior quarter
Gross margin of 14% to 17%
Net income of ($5 million) to $17 million, or ($0.02) per basic share to $0.08 per diluted share
Full year 2014 capital expenditures of around $450 million."
from what i see' first quarter is well below estimates.i dont undestand what they say about the full year of 2014.intuitively i dont like what i see.
I suggest reading the announcement. Refers to big second half of the year. I see no ref to revenue declines other than q1 vs q4. Will add on weakness. AH on the day is usually unreliable.
I have not looked at the analysts but they are forecasting YOY revenue declines while ASX and SPIL are both showing gains (at least in Jan 14 they did). ASX and SPIL both report revenue on a monthly basis.
Tessera litigation wasn't mentioned in PR. That is something that will be hanging over their head in 2014. My guess is that they didn't adjust the accrual in the fourth quarter as earnings were pretty strong.