Amkor Technology 2025 Q1 Earnings Beats Expectations as Net Income Drops 63.4%

Amkor Technology (AMKR) reported its fiscal 2025 Q1 earnings on Apr 28th, 2025. The company posted quarterly earnings of $0.09 per share, aligning with analyst expectations. Despite revenue falling 3.2% year-on-year to $1.32 billion, it surpassed the consensus estimate of $1.28 billion. Amkor’s guidance for Q2 revenue is projected between $1.375 billion and $1.475 billion, beating market expectations with a midpoint of $1.43 billion. However, the EPS guidance of $0.15 is below analyst estimates, indicating cautious optimism.
Revenue
The total revenue of Amkor Technology decreased by 3.2% to $1.32 billion in 2025 Q1, down from $1.37 billion in 2024 Q1.
Earnings/Net Income
Amkor Technology’s EPS declined 62.5% to $0.09 in 2025 Q1 from $0.24 in 2024 Q1. Meanwhile, the company’s net income declined to $21.85 million in 2025 Q1, down 63.4% from $59.79 million reported in 2024 Q1.
Price Action
The stock price of Amkor Technology has edged up 0.40% during the latest trading day, has jumped 10.01% during the most recent full trading week, and has tumbled 9.71% month-to-date.
Post-Earnings Price Action Review
Historically, Amkor Technology's earnings disclosure has led to short-to-medium-term gains. The stock's performance after earnings reports shows a 3-Day win rate of 53.11%, a 10-Day win rate of 50.48%, and a 30-Day win rate of 53.51%. This indicates a tendency for positive performance, with the maximum observed return being 8.04% over 30 days, suggesting potential for price appreciation following earnings reports.
[object Object]
CEO Commentary
Giel Rutten, Chief Executive Officer, remarked, "Amkor delivered revenue of $1.32 billion in the first quarter at the upper end of our guidance. Communications revenue exceeded our expectations, while other end markets performed as anticipated." He noted the company’s strategic focus on "strengthening our technology leadership," "expanding our geographic footprint," and "partnering with lead customers in growth markets." Rutten expressed confidence in Amkor’s ability to navigate market dynamics, stating, "The Amkor team is handling these market dynamics with agility and is focused on executing our long-term strategy." He acknowledged the ongoing uncertainties but maintained an optimistic outlook for future performance.
Guidance
Amkor expects second quarter revenue between $1.375 billion and $1.475 billion, reflecting 8% sequential growth at the midpoint. Gross margin is anticipated to range from 11.5% to 13.5%. Operating expenses are projected at around $125 million, with a full-year effective tax rate of approximately 20%. Second quarter net income is expected to be between $17 million and $57 million, translating to EPS between $0.07 and $0.23. The company’s capital expenditure forecast remains unchanged at $850 million for 2025, focusing on expanding capacity and capabilities for advanced technology.
Additional News
Amkor Technology recently announced a 5% increase in its quarterly cash dividend, raising it from $0.07875 per share to $0.08269 per share. This decision was made by the Board of Directors, and the increased dividend was paid on April 2, 2025. Additionally, Amkor continues to expand its global footprint with strategic investments in technology and capacity to support growing demand in key markets. The company has also made significant progress in its new facility in Vietnam, enhancing its production capabilities to meet future industry needs.