What Happened?
Shares of semiconductor packaging and testing company Amkor Technology (NASDAQ: AMKR) fell 6.3% in the morning session after the company reported third-quarter results and provided a weaker-than-expected forecast for the fourth quarter. The semiconductor packaging and testing company posted third-quarter revenue of $1.99 billion and earnings per share of $0.51, both surpassing Wall Street estimates. However, investors focused on the disappointing outlook for the next quarter. Amkor guided for fourth-quarter revenue of $1.83 billion, which was below analysts' projections and marked a sequential decline. The soft guidance overshadowed the current quarter's strong performance, raising concerns about near-term demand and weighing on the stock.
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What Is The Market Telling Us
Amkor’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 2.9% on the news that B. Riley raised its price target on the stock and investors anticipated the company's upcoming earnings report, which saw positive estimate revisions. The analyst firm increased its price target on Amkor to $29 from $24, while keeping a Neutral rating. The positive sentiment came just before the company was scheduled to release its third-quarter 2025 earnings results. Fuelling the optimism, analysts had already lifted their financial forecasts for the company. Over the previous 90 days, full-year revenue estimates for 2025 were increased from $6.22 billion to $6.60 billion. In a similar vein, earnings per share estimates for the full year 2025 also rose from $1.09 to $1.13.
Amkor is up 23.2% since the beginning of the year, and at $32.05 per share, it is trading close to its 52-week high of $33.18 from October 2025. Investors who bought $1,000 worth of Amkor’s shares 5 years ago would now be looking at an investment worth $2,772.
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