Earnings Beat: Amkor Technology, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
A week ago, Amkor Technology, Inc. (NASDAQ:AMKR) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 8.1% to hit US$1.4b. Amkor Technology also reported a statutory profit of US$0.38, which was an impressive 29% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Amkor Technology
Taking into account the latest results, the current consensus from Amkor Technology's two analysts is for revenues of US$5.27b in 2021, which would reflect a solid 15% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 8.7% to US$1.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.02b and earnings per share (EPS) of US$1.05 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for Amkor Technology 7.1% to US$14.63on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Amkor Technology's growth to accelerate, with the forecast 15% growth ranking favourably alongside historical growth of 7.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Amkor Technology is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amkor Technology's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Amkor Technology .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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