Amkor Technology 2025 Q2 Earnings EPS Decline as Net Income Drops 18%

Amkor Technology (AMKR) reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. Amkor's Q2 2025 results fell short of expectations with an 18% decline in net income compared to the previous year. The company provided a cautious outlook with in-line guidance for Q3 2025. Analysts had anticipated a more substantial performance, especially in light of the company's strategic investments in advanced technologies. The guidance for the next quarter suggests potential sequential growth, but the market remains watchful of Amkor's cost management and competitive positioning.

Revenue

Earnings/Net Income
Amkor Technology's EPS declined 18.5% to $0.22 in 2025 Q2 from $0.27 in 2024 Q2. Meanwhile, the company's net income declined to $55.05 million in 2025 Q2, down 18.1% from $67.26 million reported in 2024 Q2. The decrease in EPS highlights challenges in maintaining profitability amidst rising costs.

Price Action

Post-Earnings Price Action Review
The strategy of buying Amkor Technology (AMKR) shares post-revenue increase quarter-over-quarter and holding for 30 days yielded moderate returns but underperformed the market significantly. With a compound annual growth rate of just 5.00%, the strategy lagged behind the benchmark by 83.25 percentage points. Despite having no maximum drawdown, the minimal risk was overshadowed by a low Sharpe ratio of 0.10, indicating limited potential for growth. Investors seeking robust returns found the strategy's performance lacking, as it failed to capitalize effectively on market dynamics. While Amkor’s revenue growth offered some promise, the broader market delivered superior gains, making it difficult for this approach to gain traction among discerning investors.

CEO Commentary
Amkor Technology's President and CEO, Guillaume Marie Jean Rutten, expressed satisfaction with the company's second-quarter performance, noting a 14% sequential revenue increase to $1.51 billion, driven by double-digit growth across all end markets. He highlighted the adaptability of the team in addressing complex global conditions and emphasized the strong communication and computing markets, citing a 15% growth in communications, supported by the iOS ecosystem. Rutten mentioned the company's strategic focus on advanced packaging technologies and collaborations with lead customers in AI and high-performance computing as key growth drivers, reflecting an optimistic outlook for continued momentum in the upcoming quarters.

Guidance
For the third quarter of 2025, Amkor expects revenue between $1.875 billion and $1.975 billion, representing a sequential growth of 27% at the midpoint. Gross margin is projected to range between 13% and 14.5%, influenced by increased material content due to advanced SiP products. The company anticipates net income of $85 million to $120 million, resulting in an EPS between $0.34 and $0.48. The capital expenditure forecast for 2025 remains unchanged at $850 million, focused on expanding capacity and capabilities for advanced technologies.

Additional News
In recent weeks, Amkor Technology announced the declaration of a quarterly dividend, maintaining its commitment to returning capital to shareholders. On May 15, 2025, the company declared a dividend, marking its ongoing dedication to rewarding investors. Furthermore, Amkor is set to release its Q2 2025 financial results on July 28, 2025, after the market close, followed by a conference call to discuss the outcomes. These events are part of Amkor’s standard financial communication practices and reflect its transparency and engagement with the investor community. The continuity of dividend payments underscores Amkor’s financial stability and strategic focus on maintaining shareholder value amidst industry fluctuations.