Amkor Shares Plunge 8% On Weak Guidance, But Q4 Profit Top View

(RTTNews) - Shares of Amkor Technology, Inc. (AMKR) plunged nearly eight percent in extended trading on Monday after the semiconductor packaging subcontractor provided weak guidance for the first quarter.

However, the company reported a Profit for the fourth quarter that soared from last year, reflecting improved margins and sales growth. Adjusted earnings per share topped analysts' expectations, while quarterly sales missed their estimates by a whisker.

"We delivered solid fourth quarter results with sales at the mid-point of our guidance, and gross margin and earnings per share at the high end," CFO Joanne Solomon said in a statement.

The Chandler, Arizona-based company reported net income of $40.84 million or $0.18 per share for the fourth quarter, higher than $7.15 million or $0.05 per share in the prior-year quarter.

Excluding the items, adjusted net income for the quarter was $40.84 million or $0.18 per share, compared to $27 million or $0.13 per share in the year-ago quarter.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 4 percent to $754.88 million from $722.66 million in the same quarter last year, but missed three Wall Street analysts' consensus estimate of $758.88 million by a whisker.

Gross margin for the quarter improved 430 basis points to 19.9 percent from last year's 15.6 percent.

For fiscal 2013, the company reported net income of $109.30 million or $0.50 per share, higher than $41.82 million or $0.24 per share in the prior year.

Excluding the items, adjusted net income for the year was $119 million or $0.54 per share, compared to $94 million or $0.45 per share in the year ago.

Net sales for the full year increased 7 percent to $2.96 billion from $2.76 billion in the previous year.

Street was looking for full-year 2013 earnings of $0.47 per share on annual revenues of $2.95 billion.

"Historically, the first quarter is our weakest quarter of the year, and 2014 fits that pattern. We expect that first quarter revenues will be down 11% sequentially, mostly due to seasonality, but also because of continuing weakness in the high-end of the mobile device market," President and CEO Steve Kelley stated.

Looking ahead to first quarter, the company expects results between a loss of $0.02 and earnings of $0.08 per share, on projected net sales between $650 million and $700 million and gross margins of 14 to 17 percent. Analysts currently project earnings of $0.09 per share on quarterly revenues of $719.95 million.

"For the full year, we see sequential growth in the second quarter, followed by a strong second half tied to the launch of flagship mobile devices," Kelley added.

AMKR closed Monday's regular trading session at $5.32, up $0.13 or 2.50% on a volume of 1.12 million shares. However, the stock plunged $0.40 or 7.52% in after-hours trading.