TEMPE, Ariz. - Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ: AMKR), a prominent semiconductor packaging and test services provider, reported its second quarter financial results, which were in line with analyst expectations for earnings but fell short on future guidance, leading to a 6.9% drop in share price.
For the second quarter ended June 30, 2024, the company posted earnings per diluted share of $0.27, surpassing the analyst consensus by $0.04. Revenue reached $1.46 billion, slightly above the consensus estimate of $1.45 billion and marking a marginal increase from the $1.458 billion reported in the same quarter of the previous year.
Giel Rutten, Amkor's president and CEO, attributed the quarter's performance to strong demand in Advanced packaging, particularly for premium tier smartphones and AI solutions. However, he noted that this was partially offset by weaker demand and inventory adjustments in the Automotive & Industrial and Consumer end markets.
Looking ahead, Amkor provided guidance for the third quarter of 2024, projecting earnings per diluted share in the range of $0.42 to $0.56, which is below the analyst consensus of $0.65. Revenue expectations for the upcoming quarter are set between $1.785 billion and $1.885 billion, with the midpoint falling short of the consensus estimate of $1.868 billion.
Despite the current headwinds, Amkor remains a strategic manufacturing partner for leading semiconductor companies and continues to invest in its capabilities, with full-year capital expenditures anticipated to be around $750 million.
Amkor's balance sheet remains robust, with $1.5 billion in total cash and short-term investments and $1.1 billion in total debt as of June 30, 2024. The company also paid a quarterly dividend of $0.07875 per share on June 24, 2024, underscoring its commitment to returning value to shareholders.
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