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Amkor (AMKR) Gears Up for Q4 Earnings: What's in the Cards?

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Amkor Technology, Inc. (AMKR - Free Report) is set to report fourth-quarter 2019 results on Feb 10. In the last reported quarter, the company delivered a positive earnings surprise of 228.6%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering average positive surprise of 98.7%.

Estimates for Q4

Amkor expects fourth-quarter 2019 non-GAAP earnings in the range of 11-32 cents per share. The Zacks Consensus Estimate for earnings is pegged at $22 cents per share, indicating growth of 83.3% from the year-ago quarter.

The company expects revenues in the range of $1.05-$1.14 billion. The Zacks Consensus Estimate for revenues is pegged at $1.09 billion, indicating growth of 1.26% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Amkor Technology, Inc. Price and EPS Surprise

 

Performance in the Last Reported Quarter

Amkor had reported third-quarter 2019 non-GAAP earnings of 23 cents per share, beating the Zacks Consensus Estimate by 16 cents. However, the figure decreased 4.2% from the year-ago quarter.

Revenues of $1.1 billion surpassed the Zacks Consensus Estimate of $1.03 billion.

Factors to Note

Amkor has been registering solid growth across all end markets served. The communications market is expected to have performed well, driven by the launch of phones integrated with its content. Additionally, 5G deployment strengthened its position in the communications market.

Increasing volume of Amkor’s advanced SiP technology is expected to have aided the top line in the consumer market.

The automotive and industrial market is also expected to have performed well in the quarter. Rising need for advanced packaging in ADAS, infotainment and other digital-intensive applications is expected to have aided growth. The company’s Flip Chip and wafer-level fan-out packages have been gaining traction across customers.

Revenues from Advanced Products — which include flip chip scale packages, wafer-level chip scale packages and flip chip ball grid array packages — are expected to have added to Amkor’s top-line growth.

However, sluggish performance of the company’s Mainstream product lines is expected to have impacted the top line in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Amkor this time around. 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.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Amkor has a Zacks Rank #2.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases.

Five9, Inc. (FIVN - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2.

Applied Materials, Inc. (AMAT - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #1.

Applied Optoelectronics, Inc. (AAOI - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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