Amkor Technology Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, reported mixed results for the third quarter of 2024, with earnings missing analysts' estimates and revenue beating expectations. However, the company's disappointing guidance for the fourth quarter sent its shares tumbling.
For the third quarter, Amkor posted revenue of $1.86 billion, up 27% sequentially and 2.2% year-over-year, driven by strong demand for its advanced packaging services, particularly in the communications and consumer end markets. This figure surpassed analysts' estimates of $1.84 billion.
However, the company's earnings per share (EPS) of $0.49 missed analysts' expectations by a penny, coming in at $0.01 below the consensus estimate of $0.50. Amkor's profitability metrics, such as gross margin, operating income, and net income, declined compared to the same period last year.
The real disappointment came from Amkor's guidance for the fourth quarter of 2024. The company forecasts revenue in the range of $1.60 billion to $1.70 billion, lower than analysts' estimates of $1.84 billion. Additionally, Amkor expects gross margin of 13.5% to 15.5% and net income of $70 million to $110 million, or $0.28 to $0.44 per diluted share, suggesting further declines in profitability compared to Q3 2024 and the year-ago period.
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