Amkor Technology AMKR is slated to report third-quarter 2024 results after market close on Oct. 28.

AMKR anticipates third-quarter revenues between $1.785 billion and $1.885 billion (mid-point $1.835 billion), indicating sequential growth of 22-29%. The Zacks Consensus Estimate for revenues is pegged at $1.83 billion, suggesting a rise of 0.6% from the year-ago quarter’s $1.82 billion.

Amkor expects third-quarter earnings per share in the range of 42-56 cents. The Zacks Consensus Estimate for earnings is pinned at 50 cents per share, unchanged over the past 60 days. This figure indicates a decline of 7.4% from the year-ago quarter’s reported figure.

AMKR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 45.4%.


Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Factors to Consider

Amkor’s third-quarter performance is likely to have been driven by production ramps for new products, including advanced system-in-package (SiP) technology and 2.5D technology. The growing demand for Internet of Things wearables, along with production ramps of new products by vendors utilizing SiP technology, is anticipated to have driven the Consumer end market’s sales in the quarter under review.

Strength in AI, coupled with robust demand in high-performance computing and ARM-based personal computers, is likely to have boosted Amkor’s revenues from the Computing end market in the to-be-reported quarter. Advanced packaging in support of the seasonal launch of premium tier smartphones is likely to have benefited the Communications end market.

AMKR’s multiple long-term partnerships and expanding its broad geographic footprint are expected to have driven its top line in the quarter under review.

Amkor’s recent collaboration with Infineon Technologies to operate a dedicated packaging and test center at AMKR’s manufacturing site in Porto is a notable development. With this long-term agreement, Infineon and Amkor further strengthen their partnership, extending the classical outsourced semiconductor assembly and test business model.

Nonetheless, the continued weak performance across the Automotive and Industrial markets is likely to have more than offset the benefits of revenue growth across other end markets.

Performance in the Automotive and Industrial end markets is likely to have been hurt by ongoing inventory corrections. In the second quarter, Amkor reported a 2% sequential decline in revenues from this end market.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

AMKR has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.

Arista Networks ANET has an Earnings ESP of +0.96% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have surged 68.4% year to date. It is slated to report its third-quarter 2024 results on Nov. 7.

The Zacks Consensus Estimate for ANET’s third-quarter 2024 earnings is pegged at $2.08 per share, unchanged over the past 60 days. This suggests an improvement of 13.7% from the year-ago quarter’s reported figure.

Onto Innovation ONTO has an Earnings ESP of +2.74% and a Zacks Rank #2 at present.

ONTO shares have gained 34.7% year to date. It is slated to release third-quarter 2024 results on Oct. 31.

The Zacks Consensus Estimate for ONTO’s earnings is pegged at $1.31 per share, up by a couple of pennies over the past 60 days. This indicates growth of 36.5% from the year-ago quarter’s reported figure.

Meta Platforms META has an Earnings ESP of +2.83% and carries a Zacks Rank #2 at present. META shares have surged 64.5% year to date. It is set to report third-quarter 2024 results on Oct. 30.

The Zacks Consensus Estimate for META’s third-quarter 2024 earnings is pegged at $5.17 per share, up by a couple of pennies for the past 60 days, indicating an improvement of 17.8% from the year-ago quarter’s reported figure.

 

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