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Will Amkor (AMKR) Q2 Earnings Gain From Strong Auto Demand?

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Dril-Quip (DRQ) Q3 Earnings Preview: What to Know Ahead of the Release

Dril-Quip (DRQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Amkor Technology, Inc. AMKR will report second-quarter 2018 results on Jul 30. In the last reported quarter, the company delivered a negative earnings surprise of 20.00%.

We observe that shares of Amkor have lost 17.7% in the past 12 months compared with its industry’s decline of 2.8%.

Let’s find out how things are shaping up for this announcement.

Factors to Consider

Amkor has been registering solid growth across all end markets, predominantly communications and automotive. Demand from all markets is expected to remain stable and so are revenues in the soon-to-be-reported quarter.

The company has been making efforts to channelize its resources in important growth areas like automotive and increase investments in Greater China. In this regard, Amkor invested huge amounts in the Shanghai factory and Greater China sales team to attract more business.

Automotive market growth is expected to be driven by increasing electronic content. Given its attractive value proposition for automotive customers, the company is poised to benefit going ahead and contribute significantly to top-line growth.

For the second quarter, Amkor expects revenues in the range of $990 million-$1.07 billion, up 2% year over year. Gross margin is expected within 14-16%. Earnings per share are expected in the range of (2 cents)-10 cents on a GAAP basis.

What Our Model Says

Amkor has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult. This is because per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.

Amkor Technology, Inc. Price and EPS Surprise

 

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

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.

AMETEK AME has an Earnings ESP of +0.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies A has an Earnings ESP of +0.88% and a Zacks Rank #3.

Fortive Corporation FTV has an Earnings ESP of +0.84 and a Zacks Rank #3.

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Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
 
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