Amkor Profit Rises; Stock Up On Strong Guidance - Update

(RTTNews) - Amkor Technology Inc (AMKR), a semiconductor packaging and test services provider, Monday reported a higher second-quarter profit, led by a 3 percent climb in sales along with better margins. Earnings, however, missed Wall Street estimates, while sales exceeded expectations.

Amkor provided strong guidance for the third quarter, and its shares rallied 6 percent in after-hours trade on the Nasdaq.

"We are poised to grow faster than the semiconductor industry in 2014 and improve our profitability," said CEO Steve Kelley. "The launch of flagship mobile devices with high Amkor content is expected to drive third quarter growth of 9 percent to 15 percent..."

Amkor, based in Chandler, Arizona, posted second quarter net earnings of $50 million or $0.21 per share, including a net gain of $0.08 per share related to the sale of its Japanese subsidiary. This compares with earnings of $30 million or $0.14 per share last year.

On average, five analysts polled by Thomson Reuters expected earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the second quarter climbed to $767 million from $746 million a year ago, topping analysts' expectations of $761.40 million.

Results were also helped by gross margin that climbed to 19.6 percent from 18.5 percent last year.

For the third quarter, Amkor projects earnings of $0.20 to $0.29 per share and sales of $815 million to $865 million. Analysts currently expect earnings of $0.24 per share on revenue of $826.7 million for the quarter. Amkor stock closed Monday at $9.80, up $0.01 or 0.10%, on a volume of more than 3 million shares. In after hours, the stock gained $0.63 or 6.43% at $10.43.