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Amkor (AMKR) Gears Up for Q2 Earnings: What's in the Cards?

Zacks Equity Research
·4 min read

Amkor Technology, Inc. AMKR is set to report second-quarter 2020 results on Jul 27. In the last reported quarter, the company delivered an earnings surprise of 100.00%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering average surprise of 114.45%.

Second-Quarter Expectations

Amkor expects second-quarter 2020 non-GAAP earnings in the range of ($0.13) to 8 cents per share. The Zacks Consensus Estimate for earnings is pegged at a loss of 2 cents per share.

The company expects revenues in the range of $1-$1.11 billion. The Zacks Consensus Estimate for the same is pegged at $1.05 billion.

Let’s see how things have shaped up for this announcement.

Amkor Technology, Inc. Price and EPS Surprise

Amkor Technology, Inc. Price and EPS Surprise
Amkor Technology, Inc. Price and EPS Surprise

Amkor Technology, Inc. price-eps-surprise | Amkor Technology, Inc. Quote

Performance in the Last Reported Quarter

Amkor reported first-quarter 2019 non-GAAP earnings of 26 cents per share, beating the Zacks Consensus Estimate by 13 cents.

Revenues of $1.15 billion also surpassed the Zacks Consensus Estimate by 6.4%.

Factors to Note

Amkor has been registering solid growth across all end markets served. The communications market is expected to have performed well, driven by the launch of phones integrated with content. Additionally, 5G deployment strengthened its position in the communications market.

Increasing volume of Amkor’s advanced SiP technology is expected to have aided the top line in the consumer market.

The automotive and consumer market is also expected to have performed well in the quarter. The rising need for advanced packaging in ADAS, infotainment and other digital-intensive applications is expected to have aided its growth. The company’s Flip Chip and wafer-level fan-out packages have been gaining traction across customers.

Revenues from Advanced Products — which include flip chip scale packages, wafer-level chip scale packages and flip chip ball grid array packages — are expected to have boosted Amkor’s top-line growth.

However, sluggish performance of the company’s Mainstream product lines and the global coronavirus-driven economic crisis are expected to have been major headwinds in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Amkor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Amkorhas a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases.

NXP Semiconductors N.V. NXPI has an Earnings ESP of +11.90% and holds a Zacks Rank of 2.

Netflix, Inc. NFLX has an Earnings ESP of +2.65% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +14.37% and a Zacks Rank #1.

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