Amkor Shares Surge 6% As Q1 Results Top Estimates

(RTTNews) - Shares of Amkor Technology, Inc. (AMKR) rose more than six percent in extended trading on Monday after the semiconductor packaging subcontractor reported results for the first quarter that topped analysts' expectations.

The company reported a profit for the quarter that grew from last year, reflecting improved margins and sales growth. The company also provided earnings and revenue guidance for the second quarter.

"First quarter results were stronger than we anticipated, driven by incremental demand for advanced packages. We made solid progress in winning key mobile device opportunities, expanding our customer base and driving improved profitability," President and CEO Steve Kelley said in a statement.

The Chandler, Arizona-based company reported net income of $20.6 million or $0.09 per share for the first quarter, higher than $13.4 million or $0.07 per share in the prior-year quarter.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up 1 percent to $696.04 million from $687.53 million in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $678.13 million.

Gross margin for the quarter improved 180 basis points to 18.5 percent from last year's 16.7 percent, primarily due to improved capacity utilization and lower cost of goods sold.

Looking ahead to second quarter, the company expects earnings in a range of $0.08 to $0.18 per share, on projected net sales between $735 million and $785 million and gross margins of 18 to 21 percent. Street is currently looking for second-quarter earnings of $0.12 per share on revenues of $733.77 million.

"Driven by stronger customer forecasts for mobile devices and continued momentum from our growth initiatives, our expectations for the second quarter and full year 2014 have improved considerably. Accordingly, we are raising our expectations for full year 2014 capital expenditures to around $575 million to capture these growth opportunities," Kelley added.

AMKR closed Monday's regular trading session at $7.07, down $0.09 or 1.26% on a volume of 1.92 million shares. However, the stock gained $0.43 or 6.08% in after-hours trading.