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Amkor Technology (AMKR) Q4 Earnings & Revenues Top Estimates
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Amkor Technology, Inc. (AMKR - Free Report) reported fourth-quarter 2019 earnings of 41 cents per share, beating the Zacks Consensus Estimate by 86.4%. Further, the figure significantly improved from 12 cents in the year-ago quarter. Further, the bottom-line grew 78.3% sequentially.
Revenues of $1.18 billion surpassed the Zacks Consensus Estimate by 7.6%. The top line was also higher than management’s guided range of $1.05 billion to $1.14 billion. Further, the figure improved 9% year over year and 8.7% sequentially.
The company witnessed solid demand for advanced packaging technologies in the consumer and mobile markets during the reported quarter, which drove the top line.
However, Amkor continued to witness sluggish performance in Mainstream product lines in the reported quarter.
Nevertheless, Amkor remains optimistic about growth opportunities related to 5G, which in turn is expected to strengthen its position in the communications market. Moreover, it is likely to drive momentum across RF module and power management areas.
Following better-than-expected guidance for earnings and revenues for the ongoing quarter, shares of the company have surged 16.9% in the pre-market trading.
Revenues in Terms of Product Lines
Advanced Products — which include flip chip scale packages, wafer-level chip scale packages and flip chip ball grid array packages — accounted for approximately 56.6% of fourth-quarter revenues. Revenues improved 18.3% year over year to $667 million.
Mainstream Products — which include lead frame packages, substrate-based wire bond packages and MEMS packages — accounted for the balance 43.4% of fourth-quarter revenues. Revenues declined 1.2% year over year to $511 million.
Amkor Technology, Inc. Price, Consensus and EPS Surprise
The company operates in four end-markets namely — Communications, Computing, Consumer and Automotive, industrial and other. Notably, Communications, Computing, Consumer and Automotive, industrial and other contributed 37%, 14%, 24% and 25% to total revenues in the fourth quarter, respectively.
In communications market, the company continued to benefit from the launch of flagship phones. Further, increasing volume of Amkor’s advanced SiP technology drove the top line in the consumer market.
In automotive and industrial market, Amkor’s strengthening momentum across ADAS infotainment applications remained positive. Additionally, the company benefited from growing demand for advanced chips and modules, particularly for data center, in computing market.
Margins
Per management, gross margin of 18.9% expanded 200 basis points (bps) from the year-ago quarter. Further, it was higher than management’s guided range of 15-18%.
Operating expenses of $104.6 million decreased 2.2% year over year due to disciplined discretionary spending and manufacturing cost control. As a percentage of revenues, the figure contracted 100 bps from the year-ago quarter.
Notably, operating margin was 10%, which expanded 300 bps from the prior-year quarter.
Balance Sheet
As of Dec 31, 2019, cash equivalents and restricted cash was $895.6 million compared with $601.3 million as of Sep 30, 2019.
Further, long-term debt was $1.3 billion at the end of the fourth quarter compared with $1.2 billion at the end of the third quarter.
Guidance
For first-quarter 2020, Amkor expects revenues in the range of $1.08 billion to $1.16 billion. The Zacks Consensus Estimate for revenues is pegged at $1.01 billion.
Further, earnings are expected between 9 cents and 24 cents per share. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share.
The company anticipates gross margin to lie within the range of 14.5-17.5%.
Zacks Rank & Other Key Picks
Amkor Technology currently has a Zacks Rank #2 (Buy).
Long-term earnings growth rate for Alteryx, Itron and Benefitfocus is currently pegged at 39.85%, 25% and 25%, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Amkor Technology (AMKR) Q4 Earnings & Revenues Top Estimates
Amkor Technology, Inc. (AMKR - Free Report) reported fourth-quarter 2019 earnings of 41 cents per share, beating the Zacks Consensus Estimate by 86.4%. Further, the figure significantly improved from 12 cents in the year-ago quarter. Further, the bottom-line grew 78.3% sequentially.
Revenues of $1.18 billion surpassed the Zacks Consensus Estimate by 7.6%. The top line was also higher than management’s guided range of $1.05 billion to $1.14 billion. Further, the figure improved 9% year over year and 8.7% sequentially.
The company witnessed solid demand for advanced packaging technologies in the consumer and mobile markets during the reported quarter, which drove the top line.
However, Amkor continued to witness sluggish performance in Mainstream product lines in the reported quarter.
Nevertheless, Amkor remains optimistic about growth opportunities related to 5G, which in turn is expected to strengthen its position in the communications market. Moreover, it is likely to drive momentum across RF module and power management areas.
Following better-than-expected guidance for earnings and revenues for the ongoing quarter, shares of the company have surged 16.9% in the pre-market trading.
Revenues in Terms of Product Lines
Advanced Products — which include flip chip scale packages, wafer-level chip scale packages and flip chip ball grid array packages — accounted for approximately 56.6% of fourth-quarter revenues. Revenues improved 18.3% year over year to $667 million.
Mainstream Products — which include lead frame packages, substrate-based wire bond packages and MEMS packages — accounted for the balance 43.4% of fourth-quarter revenues. Revenues declined 1.2% year over year to $511 million.
Amkor Technology, Inc. Price, Consensus and EPS Surprise
Amkor Technology, Inc. price-consensus-eps-surprise-chart | Amkor Technology, Inc. Quote
End-Market Details
The company operates in four end-markets namely — Communications, Computing, Consumer and Automotive, industrial and other. Notably, Communications, Computing, Consumer and Automotive, industrial and other contributed 37%, 14%, 24% and 25% to total revenues in the fourth quarter, respectively.
In communications market, the company continued to benefit from the launch of flagship phones. Further, increasing volume of Amkor’s advanced SiP technology drove the top line in the consumer market.
In automotive and industrial market, Amkor’s strengthening momentum across ADAS infotainment applications remained positive. Additionally, the company benefited from growing demand for advanced chips and modules, particularly for data center, in computing market.
Margins
Per management, gross margin of 18.9% expanded 200 basis points (bps) from the year-ago quarter. Further, it was higher than management’s guided range of 15-18%.
Operating expenses of $104.6 million decreased 2.2% year over year due to disciplined discretionary spending and manufacturing cost control. As a percentage of revenues, the figure contracted 100 bps from the year-ago quarter.
Notably, operating margin was 10%, which expanded 300 bps from the prior-year quarter.
Balance Sheet
As of Dec 31, 2019, cash equivalents and restricted cash was $895.6 million compared with $601.3 million as of Sep 30, 2019.
Further, long-term debt was $1.3 billion at the end of the fourth quarter compared with $1.2 billion at the end of the third quarter.
Guidance
For first-quarter 2020, Amkor expects revenues in the range of $1.08 billion to $1.16 billion. The Zacks Consensus Estimate for revenues is pegged at $1.01 billion.
Further, earnings are expected between 9 cents and 24 cents per share. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share.
The company anticipates gross margin to lie within the range of 14.5-17.5%.
Zacks Rank & Other Key Picks
Amkor Technology currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Alteryx, Inc. , Itron, Inc. (ITRI - Free Report) and Benefitfocus, Inc. . All the three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Alteryx, Itron and Benefitfocus is currently pegged at 39.85%, 25% and 25%, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>