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Amkor (AMKR) Gears Up for Q4 Earnings: What's in the Cards?

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Amkor Technology, Inc. (AMKR - Free Report) is set to report fourth-quarter 2020 results on Feb 8. In the last reported quarter, the company delivered an earnings surprise of 46.2%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 370.6%.

Fourth-Quarter Expectations

Amkor expects fourth-quarter 2020 non-GAAP earnings in the range of 28-47 cents per share. The Zacks Consensus Estimate for earnings is pegged at 37 cents per share.

The company expects revenues in the range of $1.25-$1.35 billion. The Zacks Consensus Estimate for the same is pegged at $1.30 billion.

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

Performance in the Last Reported Quarter

Amkor reported third-quarter 2020 non-GAAP earnings of 38 cents per share, beating the Zacks Consensus Estimate by 12 cents.

Revenues of $1.35 billion also surpassed the Zacks Consensus Estimate by 8.3%.

Amkor Technology, Inc. Price and EPS Surprise

Amkor Technology, Inc. Price and EPS Surprise

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

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.

Revenues from Advanced Products — which includes 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 impact results for the to-be-reported quarter to some extent.

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, Amkor has 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 an earnings beat in the upcoming releases.

Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Trimble Inc. (TRMB - Free Report) has an Earnings ESP of +8.83% and a Zacks Rank #3.

Lattice Semiconductor Corporation (LSCC - Free Report) has an Earnings ESP of +1.19% and holds a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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