Shares of semiconductor packaging and test services company Amkor Technology(NASDAQ: AMKR) fell as much as 11.6% on Tuesday following the company’s second-quarter earnings release. The stock closed the trading day down about 8.5%.
For its second quarter, Amkor reported earnings per share of $0.48 on revenue of $989 million. Adjusted for the sale of its K1 factory in Korea during the quarter, Amkor’s earnings per share was $0.14.
The company’s mixed results, when compared to analysts’ expectations, may be one reason the stock sold off on Tuesday. Though Amkor’s adjusted earnings per share (EPS) of $0.14 was $0.02 above analysts’ consensus estimate for the quarter, revenue was notably below a consensus analyst estimate for $996 million.
But Amkor’s outlook was also weaker than expected. For its third quarter, management said it anticipates revenue to be between $1.04 billion and $1.12 billion and EPS to be between $0.10 and $0.27. On average, analysts expected third-quarter revenue and EPS of $1.16 billion and $0.32, respectively.
Going forward, Amkor management expects revenue to rise 9% in Q3 2017 compared to Q 2017. Amkor CEO Steve Kelley cited Amkor’s launch of flagship mobile devices as the reason for the expected increase.
Notably, Amkor’s forecast for 9% sequential revenue growth in its third quarter marks an acceleration from Amkor’s 8% sequential revenue growth in Q2.
10 stocks we like better than Amkor Technology
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the for investors to buy right now… and Amkor Technology wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2017
Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.