Why Amkor Technology Stock Soared Tuesday
What happened
Shares of Amkor Technology (NASDAQ: AMKR), a semiconductor packaging and test services company, jumped on Tuesday; they rose 19.3% as of 3:52 p.m. EDT.
The stock's rise follows the company's second-quarter update, which featured a narrower-than-expected loss per share and signs of improving operations on a sequential basis.
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So what
In its second-quarter earnings release after market close on Monday, Amkor said its revenue for the period came in slightly ahead of the midpoint of its guidance range. Even better, its earnings per share were at the high end of management's guidance range for the key metric.
Revenue for the period was $895 million, down from $1.07 billion in the year-ago quarter. The company's loss per share was $0.04, better than a $0.10 loss per share in Q1, but worse than earnings per share of $0.14 in the year-ago quarter.
Although it posted the same revenue it did in the first quarter of 2019, Amkor's operating income increased from $13 million in Q1 to $23 million in Q2. "Strong factory performance and prudent cost management drove solid sequential improvement in operating income," said Amkor CEO Steve Kelley in the earnings release.
Now what
For its third quarter, Amkor said it expects net sales between $990 million and $1.07 billion. Importantly, management's guidance range for earnings per share shows a good chance of profitability during the quarter: Amkor expects EPS to be between a loss of $0.03 and a profit of $0.17.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
