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Will Amkor (AMKR) Q1 Earnings Gain From Strong Auto Demand?

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Amkor Technology, Inc. (AMKR - Free Report) will report first-quarter 2018 results on Apr 26. Last quarter, the company’s earnings surprise was 26.3%.

We observe that shares of Amkor have lost 24.5% in the past 12 months, significantly underperforming its industry’s rally of 26.7%.

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

Factors to Consider

Amkor has been witnessing 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.

In the fourth quarter, management stated that the integration of NANIUM is now complete and the deal expands Amkor’s presence in fan-out technology. The company has transferred NANIUM process to its K5 facility and expanded capacity in the Porto facility.

The acquisition will help Amkor strengthen its foothold in the fast-growing market of wafer-level packaging for smartphones, tablets and other applications.

Amkor continues to make efforts to channelize its resources in important growth areas like automotive. The company has also increased investments in Greater China. These are expected to contribute significantly to the company’s top-line growth.

For the first quarter, Amkor expects revenues in the range of $0.98-$1.06 billion, up 12% year over year. Gross margin is expected within 14-16%. Earnings per share are expected in the range of (2 cents)-11 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 these have the right combination of elements to deliver a positive earnings surprise.

Western Digital (WDC - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #1.

Paycom Software (PAYC - Free Report) has an Earnings ESP of +0.33% and sports a Zacks Rank #1.

Agilent Technologies (A - Free Report) has an Earnings ESP of +3.72% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

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