Why Amkor Technology, Inc. Stock Jumped 21%
What: On Tuesday, chip-packaging and test-services company Amkor Technology (NASDAQ: AMKR) soared as much as 20.9% after the company reported better-than-expected second-quarter revenue and earnings per share, and published better-than-expected guidance. The stock's gain has pulled back slightly, and shares were trading up about 15.5% as of 1 p.m. EDT.
Image source: Amkor Technology.
So what: Amkor's second-quarter revenue was $917 million, and EPS was $0.02. On average, analysts were expecting the company to report revenue of $876 million and a per-share loss of $0.08. In addition, the company's second-quarter revenue and EPS were both above management's own guidance for the period.
"Strong Android smartphone demand and a quicker recovery at our earthquake-damaged Kumamoto factory were the key drivers of our financial performance for the quarter," said Amkor CEO Steve Kelley in the company's press release for its second-quarter results.
Now what: Importantly, Amkor's projection for Q3 is also better than analysts were anticipating. Management expects third-quarter revenue between $1.01 billion and $1.09 billion, representing growth of 10% to 19% compared to the prior quarter. In addition, management said it expects third-quarter EPS to be between $0.12 and $0.28 -- a significant jump from its EPS of $0.02 in Q2. On average, analysts were expecting third-quarter revenue of $943 million and EPS of $0.06.
Management believes revenue growth will be driven by "the launch of mobile devices across multiple tiers."
Kelley pointed to specific areas promising the greatest expansion: "We expect robust growth in advanced SiP, Greater China and automotive."
A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.