Back to top

Image: Bigstock

ASE Technology (ASX) to Post Q3 Earnings: What to Expect?

Read MoreHide Full Article

ASE Technology Holding (ASX - Free Report) is scheduled to report third-quarter 2021 results on Oct 28.

The company reported second-quarter 2021 earnings of 16 cents per American Depositary Shares (NT$2.30).

ASE recently announced preliminary third-quarter 2021 results. Net revenues (in U.S. dollar) are expected to have grown 29.6% year over year and 19.7% sequentially, to $5.42 billion.

The company expects ATM segment revenues to be $3.24 billion, up 33% year over year and 15% sequentially.
 

 

Per ASE Technology’s previous guidance, EMS segment revenues (in U.S. dollar terms) were expected to be slightly higher than the average level of the third and fourth quarters in 2020.

Factors to Note

The ATM segment’s third-quarter revenues are likely to reflect solid momentum across all product categories (wirebond and advanced packaging, test solutions, consumer, communications and computing).

The company’s investments in geographical expansion may have aided it in acquiring new customers. This is anticipated to have benefited performance in the to-be-reported quarter.

However, continued pandemic-led supply chain disruptions across supplies and components are likely to have acted as headwinds in the to-be-reported quarter.

Longer delivery times for products like lead frames, substrates and capital equipment, among others, are expected to have resulted in higher manufacturing costs.

Insight into Upcoming Earnings Announcements

ASE Technology has underperformed the Zacks Electronics- Semiconductors segment on a year-to-date basis. While this Zacks Rank #3 (Hold) stock has rallied 19.9%, the industry gained 22.1%.

Investors interested in the industry are eagerly awaiting earnings releases from players like Silicon Motion Technology (SIMO - Free Report) , Cirrus Logic (CRUS - Free Report) and Diodes (DIOD - Free Report) .

Silicon Motion has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company is set to report earnings results on Oct 27. The Zacks Consensus Estimate for Silicon Motion’s quarterly earnings stands at $1.62 per share, up by a penny over the past 30 days.

Cirrus Logic is scheduled to release second-quarter fiscal 2022 results on Nov 1. The Zacks Consensus Estimate for earnings for this Zacks Rank #3 stock stands at $1.63 per share, unchanged over the past 30 days.

Diodes is set to release its third quarter 2021 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, unchanged over the past 30 days. Diodes also carries a Zacks Rank #3.

Published in