Amkor Technology (NASDAQ:AMKR)
Amkor Technology, a leading semiconductor packaging company yesterday reported their fourth quarter and full year 2016 financial results. Amkor reported fourth quarter net income of $0.42 per share which beat analyst estimates of $0.28 per share. Amkor reported fourth quarter revenues of $1.02 billion which fell short of analyst estimates of $1.04 billion. Amkor reported full year profits at $164.2 million or $0.69 per share. Amkor reported full year revenues of $3.89 billion. Amkor projects current quarter revenues to be in a range of $860 to $940 million which fell short of analyst expectations of $964.6 million.
Amkor Technology, Inc. CFO and CEO Comments
Fourth quarter revenues were up $350 million year-over-year. For the full year, revenues were up $1 billion,” said Steve Kelley, Amkor’s president and chief executive officer. “The consolidation of J-Devices and the success of our automotive, Greater China and advanced SiP initiatives fueled the growth in revenue, which in turn drove significantly improved profitability and cash flow.”
“Fourth quarter EPS was above the high end of our guidance,” said Megan Faust, Amkor’s corporate vice president and chief financial officer. “As expected, we received approximately $26 million of insurance proceeds related to the second quarter 2016 Japan earthquakes which contributed 250 basis points to gross margin and $0.08 (net of tax) to earnings per diluted share. With the receipt of these payments, the impact of the Japan earthquakes on our full year 2016 results was minimal. Business Wire
AMKR Technical Analysis
AMKR opened trading yesterday at $10.08, which was up from the previous day’s trading close of $9.97. Shares closed trading yesterday at $10.44 and spiked down after market to $9.29, equivalent to a 11% decrease from the closing price. Taking a look at the daily chart we can see that the last time AMKR traded below these levels we have to go back to October 31, 2016 when it traded at $9.27.
Taking a closer look at the daily chart we can see that before the spike down AMKR had already been in an overall downward trend dating back to November 21st, 2016 when it traded at $12.32. AMKR has a float of 109.27 million shares and traded 2.53 times the normal daily trading volume on Monday. For trading purposes, I would like to see AMKR open trading on Tuesday below $9.70 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer backgrinds, package design, packaging, and test and drop shipment services. Its packages employ wirebond, flip chip, and copper clip interconnect technologies.
The company also provides semiconductor testing services, such as wafer testing or probe, and final test services; flip chip chip scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory, and as applications processors in mobile devices; flip chip ball grid array (BGA) products for various networking, storage, computing, and consumer applications; and flip chip molded BGA packages.
In addition, it offers leadframe packages that are used in electronic devices for low to medium pin count applications; substrate-based wirebond packages that are used to connect a die to a substrate; micro-electro-mechanical systems packages that are miniaturized mechanical and electro-mechanical devices; and system-in-package modules, which are used in RF and front end modules, baseband processing, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid state drives.
The company primarily serves integrated device manufacturers, fabless semiconductor companies, and contract foundries, as well as communications, consumer, networking, computing, and automotive and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.