Q3 Earnings Highlights: Amkor (NASDAQ:AMKR) Vs The Rest Of The Semiconductor Manufacturing Stocks
Let's dig into the relative performance of Amkor (NASDAQ:AMKR) and its peers as we unravel the now-completed Q3 semiconductor manufacturing earnings season.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.6% while next quarter's revenue guidance was 3.9% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 20.3% on average since the previous earnings results.
Amkor (NASDAQ:AMKR)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.
Amkor reported revenues of $1.82 billion, down 12.6% year on year, topping analyst expectations by 1.2%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
“Amkor delivered third quarter revenue and profitability at the high end of guidance. Revenue of $1.82 billion was up 25% sequentially, driven by growth within the Communications end market, which grew year-on-year to a new record level,” said Giel Rutten, Amkor’s president and chief executive officer.
The stock is up 48.7% since the results and currently trades at $30.4.
Read our full report on Amkor here, it's free.
Best Q3: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $128.8 million, down 10.5% year on year, outperforming analyst expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
Nova delivered the biggest analyst estimates beat among its peers. The stock is up 29.1% since the results and currently trades at $131.23.
Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.
Slowest Q3: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $301.4 million, down 13.6% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
The stock is up 23.6% since the results and currently trades at $103.21.
Read our full analysis of IPG Photonics's results here.
Teradyne (NASDAQ:TER)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Teradyne reported revenues of $703.7 million, down 14.9% year on year, surpassing analyst expectations by 2.9%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is up 19.4% since the results and currently trades at $105.
Read our full, actionable report on Teradyne here, it's free.
Lam Research (NASDAQ:LRCX)
Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.
Lam Research reported revenues of $3.48 billion, down 31.4% year on year, surpassing analyst expectations by 1.9%. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.
Lam Research had the slowest revenue growth among its peers. The stock is up 16.3% since the results and currently trades at $747.29.
Read our full, actionable report on Lam Research here, it's free.
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The author has no position in any of the stocks mentioned
