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Amkor (AMKR) Gears Up for Q1 Earnings: What's in the Cards?

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Amkor Technology, Inc. (AMKR - Free Report) is set to report first-quarter 2020 results on Apr 27. In the last reported quarter, the company delivered a positive earnings surprise of 86.4%.

It topped the Zacks Consensus Estimate in all the trailing four quarters, delivering average surprise of 107.8%.

First-Quarter Expectations

Amkor expects first-quarter 2019 non-GAAP earnings in the range of 9-24 cents per share. The Zacks Consensus Estimate for earnings is pegged at 13 cents per share.

The company expects revenues in the range of $1.08-$1.16 billion. The Zacks Consensus Estimate for the same is pegged at $1.08 billion.

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 fourth-quarter 2019 non-GAAP earnings of 41 cents per share, beating the Zacks Consensus Estimate by 86.4%.

Revenues of $1.18 billion surpassed the Zacks Consensus Estimate by 7.6%.

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 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 its 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 boosted Amkor’s top-line growth.

However, sluggish performance of the company’s Mainstream product lines and global coronavirus-driven economic crisis are expected to have been major headwinds in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Amkor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But 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, Amkorhas a Zacks Rank #3.

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.

Synopsys, Inc. (SNPS - Free Report) has an Earnings ESP of +2.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wayfair Inc. (W - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank of 2.

PTC Inc. (PTC - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Synopsys, Inc. (SNPS) - free report >>

Amkor Technology, Inc. (AMKR) - free report >>

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Wayfair Inc. (W) - free report >>

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