Overview

• Semiconductor packaging firm's Q4 net sales rose 16% yr/yr, beating analyst expectations

• Net income for Q4 increased to $172 mln, earnings per share climbed to $0.69 from $0.43

• Company highlights strategic initiatives and investments in advanced packaging

Outlook

• Amkor expects Q1 2026 net sales of $1.60 bln to $1.70 bln

• Company forecasts Q1 2026 gross margin of 12.5% to 13.5%

• Amkor plans full-year 2026 capital expenditures of $2.5 bln to $3.0 bln

Result Drivers

• ADVANCED PACKAGING - Record revenue in advanced packaging and computing drove Q4 sales growth, per CEO Kevin Engel

• GROSS MARGIN IMPROVEMENT - Q4 gross margin rose to 16.7% from 15.1% in Q4 2024, indicating improved cost management or pricing strategies

• DIVIDEND INCREASE - Amkor increased its quarterly cash dividend by 1%, effective December 2025, reflecting financial stability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy."

• Wall Street's median 12-month price target for Amkor Technology Inc is $43.00, about 12.9% below its February 6 closing price of $49.36

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw9svKdBa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)