AMKR - Amkor Technology stock gains 7% on Q2 earnings beat record revenue

Amkor Technology ( NASDAQ: AMKR ) shares have gained after the company reported second quarter earnings that exceeded Wall Street estimates .

On Monday, the Arizona-based semiconductor packaging provider reported record Q2 revenue of $1.5B (+7.1% Y/Y) and earnings per share of $0.51 (in-line with prior year quarter), citing strength in advanced packaging segment.

Revenue grew 14% Y/Y in the first half. All of Amkor's ( AMKR ) end markets showed robust first half growth, with most registering double-digit gain compared to the prior year. Demand for advanced packaging solutions remained strong, driving Automotive & Industrial end market to 16% Y/Y growth, a new record.

Gross margin for quarter was 16.6% vs. 19.4% in Q2/2021, primarily due to under utilization of Shanghai factory that was shut due to COVID-19 lockdown. Shanghai factory returned to normal output levels late in the second half of the quarter.

Operating expenses were less than expected at $106M, benefiting from lower labor costs, favorable foreign currency movements and timing of new product introductions.

The company ended the quarter with $1.1B of cash and short-term investments, and total liquidity of $1.8B.

Looking ahead, Amkor ( AMKR ) sees continued solid demand into the third quarter, specifically in the communications market due to the launch of premium tier smartphones. Q3 revenue is projected to be in the range of $1.88B - $1.98B vs. $1.93B consensus ; gross margin 19%-21%; and net income between $200M to $250M, or $0.82 to $1.02 per diluted share.

Commenting on the results, DA Davidson said, "The report shows continued strong demand and despite near-term macroeconomic concerns, AMKR expects a robust 2H22 with end markets growing double digits as long-term growth drivers remain in place."

AMKR shares are up 7% currently.

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