Amkor Technology 2025 Q1 Earnings Misses Targets with Net Income Decline of 63.4%

Amkor Technology (AMKR) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. Amkor Technology's earnings results for Q1 2025 fell short of expectations. Revenue exceeded analyst estimates slightly, coming in at $1.32 billion compared to the expected $1.28 billion. However, EPS met expectations at $0.09, reflecting a significant decline from the previous year. Despite the revenue beat, the company’s guidance for Q2 predicts a revenue decline of 2.5% year-on-year, yet surpassing analyst expectations. The guidance for EPS is lower than anticipated, missing analyst estimates by 5.5%.

Revenue
Amkor Technology's total revenue for Q1 2025 reached $1.32 billion, marking a 3.2% decrease from the previous year. Within this, the advanced products segment contributed significantly with $1.06 billion, while mainstream products generated $257.96 million. The total net sales amounted to $1.32 billion, demonstrating the company's diversified product offerings despite the overall decline.

Earnings/Net Income
In Q1 2025, Amkor Technology experienced a decline in earnings, as its EPS dropped by 62.5% to $0.09, compared to $0.24 in Q1 2024. The company's net income saw a similar decline, falling by 63.4% to $21.85 million from $59.79 million in the previous year. This marks a challenging quarter for Amkor, reflecting weaker profitability.

Price Action
The stock price of Amkor Technology has dropped 3.62% during the latest trading day, has climbed 6.64% during the most recent full trading week, and has dropped 7.10% month-to-date.

Post-Earnings Price Action Review
Amkor Technology's stock price has historically demonstrated positive trends following earnings reports, particularly in the short term. The backtest results indicate that the stock tends to perform well after reports, with a 3-Day win rate of 53.03%, a 10-Day win rate of 50.48%, and a 30-Day win rate of 53.43%. These figures suggest a moderate likelihood of short-term gains post-earnings. The maximum observed return was 8.02% over 30 days, highlighting potential for significant price appreciation. However, these trends are not guaranteed and depend on various factors, including broader market conditions and company performance.

CEO Commentary
Amkor Technology's President and CEO, Giel Rutten, remarked that the company delivered first-quarter results in line with expectations, reporting revenue of $1.32 billion and earnings per share of $0.09. He highlighted the importance of closely monitoring changes in tariffs and trade regulations and their potential impact on customer supply chains. Rutten noted that Amkor's diversified global footprint and long-standing partnerships enable the company to navigate this complexity and uncertainty. The focus remains on agility and delivering value through the execution of its long-term strategy.

Guidance
Amkor Technology expects net sales for the second quarter of 2025 to be between $1.375 billion and $1.475 billion, with a projected gross margin of 11.5% to 13.5%. The company anticipates net income ranging from $17 million to $57 million, translating to earnings per diluted share of $0.07 to $0.23. Additionally, Amkor plans for full-year 2025 capital expenditures of approximately $850 million.

Additional News
Within the past three weeks, Amkor Technology has been active in non-earnings-related news. The company recently announced the appointment of a new Chief Financial Officer, strengthening its leadership team to navigate future challenges and opportunities. Additionally, Amkor declared a quarterly dividend of $0.08269 per share, reflecting a commitment to returning value to shareholders despite a challenging earnings period. Furthermore, Amkor will be presenting at the J.P. Morgan Global Technology, Media and Communications Conference on April 29, 2025, where it will discuss its strategic direction and industry developments, offering insights into its future plans amidst evolving market conditions.