Amkor Technology Beats Expectations But Takes A Step Back Anyway

Amkor Technology (Nasdaq: AMKR  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Amkor Technology met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Amkor Technology reported revenue of $683.8 million. The two analysts polled by S&P Capital IQ anticipated revenue of $686.4 million on the same basis. GAAP reported sales were 8.9% lower than the prior-year quarter's $750.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.11 for Q4 were 45% lower than the prior-year quarter's $0.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.4%, 510 basis points worse than the prior-year quarter. Operating margin was 6.4%, 550 basis points worse than the prior-year quarter. Net margin was 3.6%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $644.5 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $2.90 billion. The average EPS estimate is $0.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 303 members out of 324 rating the stock outperform, and 21 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Amkor Technology a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amkor Technology is outperform, with an average price target of $6.33.

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