Amkor Set to Report Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Amkor Technology (AMKR) is expected to report third-quarter 2024 results with anticipated revenues between $1.785 billion and$1.885 billion, indicating a sequential growth of 22-29% and a slight year-over-year increase of 0.6% [1] Financial Performance - The Zacks Consensus Estimate for AMKR's revenues is pegged at $1.83 billion, reflecting a rise from the previous year's$1.82 billion [1] - Expected earnings per share for the third quarter are in the range of 42-56 cents, with the consensus estimate at 50 cents, indicating a decline of 7.4% from the year-ago quarter [1] - AMKR has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 45.4% [1] Market Drivers - The third-quarter performance is likely driven by production ramps for new products, including advanced system-in-package (SiP) technology and 2.5D technology, alongside growing demand for Internet of Things wearables [2] - Strength in AI and robust demand in high-performance computing and ARM-based personal computers are expected to boost revenues from the Computing end market [2] - Advanced packaging for premium tier smartphones is anticipated to benefit the Communications end market [2] - Long-term partnerships and an expanding geographic footprint are expected to contribute positively to the top line [2] Challenges - Weak performance in the Automotive and Industrial markets is likely to offset revenue growth from other markets, with ongoing inventory corrections impacting these sectors [3] - In the second quarter, AMKR reported a 2% sequential decline in revenues from the Automotive and Industrial end markets [3] Earnings Expectations - AMKR currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [4]