-
Net sales: The reported value was $1.37 billion, higher than the estimated $1.356 billion.
-
Net income: It grossed $59 million, significantly exceeding expectations of $26.56 million.
-
Earnings per share (EPS): It hit $0.24, more than double the estimate of $0.11.
-
Gross profit: It reached 14.8%, an improvement from 13.2% in the same period last year.
-
Operating income: First quarter 2023 sales were $73 million and a 5.4% profit margin, compared to $69 million and a 4.7% profit margin.
-
Dividend: A quarterly dividend of $0.07875 per share was paid on April 1, 2024.
-
Future prospects: Net sales for the second quarter of 2024 are expected to be between $1.4 billion and $1.5 billion, and net income is expected to be between $35 million and $75 million.
Amkor Technology Inc (NASDAQ:AMKR), a leader in semiconductor packaging and test services, announced financial results for the first quarter ended March 31, 2024. The company reported strong net sales of $1.37 billion, beating analyst expectations of $1.356 billion. . Amkor's earnings per share (EPS) also came in at $0.24, significantly exceeding expectations of $0.11 and reflecting strong performance, contrary to market expectations. This financial update is detailed in the company's recent 8-K filing, released on April 29, 2024.
Amkor Technology operates as the world's largest outsourced semiconductor assembly and test (OSAT) service provider headquartered in the United States, specializing in advanced and mainstream semiconductor packaging and test services. The company's strategic focus on advanced products, including technologies such as flip-chip and wafer-level processing, continues to be a major revenue driver and a significant contributor to quarterly sales.
Insights into financial performance
In the first quarter of 2024, Amkor reported gross profit of $202 million and operating profit of $73 million. The company achieved a gross profit margin of 14.8% and an operating profit margin of 5.4%. These numbers demonstrate improved operational efficiency compared to the same period last year. Net income attributable to Amkor was $59 million and diluted EPS of $0.24, reflecting an increase from $0.18 in the first quarter of 2023.
Strategic developments and operational highlights
Giel Rutten, President and CEO of Amkor, said the company's plans include expanding its 2.5D capabilities to increase AI device production and strengthening partnerships to strengthen the European semiconductor supply chain. He highlighted ongoing efforts. In particular, the company is moving forward with plans for an advanced packaging and testing facility in Arizona, and is focused on ramping up production at its Vietnam factory later this year.
Looking ahead: Guidance for Q2 2024
Amkor expects second quarter 2024 net sales to be between $1.4 billion and $1.5 billion, with gross margins between 13.0% and 15.0%. Expected net income ranges from $35 million to $75 million, translating into EPS of $0.14 to $0.30. The company also plans to continue investing in technology and capacity expansion, with full-year capital expenditures expected to be approximately $750 million.
Financial condition and liquidity
As of March 31, 2024, Amkor reported total cash and short-term investments of $1.6 billion and total debt of $1.2 billion. The company maintains a strong liquidity position to support its current and future operational needs.
conclusion
Amkor Technology Inc.'s Q1 2024 financial results not only exceeded analyst expectations in terms of revenue and EPS, but also demonstrated the company's resilience and strategic foresight in navigating the semiconductor industry's challenges. Indicated. Amkor has made significant investments in capabilities and technology alongside its strategic global expansion and is well positioned to maintain its growth trajectory and strengthen its market position in the coming quarters.
For detailed insights and additional information, investors and stakeholders are encouraged to review the complete earnings report and supplementary materials available on Amkor's Investor Relations website.
For more information, see Amkor Technology Inc's full 8-K earnings release here.
This article first appeared on GuruFocus.
