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Amkor Technology (AMKR) Q1 Earnings: Is a Surprise in Store?

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Amkor Technology, Inc. (AMKR - Free Report) will report first-quarter 2017 results on Apr 27. Last quarter, the company posted a positive earnings surprise of 55.56%.

Also, over the past one year, shares of Amkor Technology outperformed the Zacks categorized Electronics Semiconductors industry. While the industry rallied 68.9%, the stock gave a return of 105.8%.

Let us see how things are shaping up for this announcement.

Factors to Consider

Amkor’s fourth-quarter results were above management expectations driven by strong smartphone demand across multiple tiers.

The company made noticeable progress in some of its key areas. These included increasing ownership in J-Devices Corporation from 66% to 100%.The consolidation of J-Devices and advanced SiP initiatives pushed up the top line.Also, automotive sales increased.

Amkor had acquired Portugal-based Nanium S.A. in Feb to strengthen its foothold in the fast-growing market of wafer-level packaging for smartphones, tablets and other applications. The deal is likely to add to its first-quarter top line.

While end market demand is expected to remain stable with particular strength in China, where the company is picking up market share, uncertainties surrounding smartphone demand and currency fluctuations could impact the upcoming results.

The company expects first-quarter revenues of approximately $860 million to $940 million, down 8% to 16% sequentially. Earnings per share are expected in the range (11) cents to 5 cents.

Earnings Whispers

Our proven model does not conclusively show that Amkor will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 3 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Amkor carries a Zacks Rank #3, which increases the predictive power of ESP. But the company’s 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Amkor Technology, Inc. Price and EPS Surprise

 

Amkor Technology, Inc. Price and EPS Surprise | Amkor Technology, Inc. Quote

Stocks to Consider

Here are some stocks which you may consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Fortive Corporation (FTV - Free Report) with an Earnings ESP of +1.75% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

Northrop Grumman Corporation (NOC - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #2.

PayPal Holdings, Inc. (PYPL - Free Report) , with an Earnings ESP of +3.03% and a Zacks Rank #3.

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