Movement Alert|Amkor Technology Overnight Decline 5.01%, Q3 Revenue Guidance Below Expectations Triggers Continued Selling

Market Focus07-29

On July 29, Amkor Technology fell 5.01% overnight, trading at $43.4/share, with turnover of $3.0845 million. The decline extends a sharp selloff triggered by the company's Q3 revenue guidance falling short of Wall Street expectations.

Amkor reported record Q2 results, with EPS of $0.70 significantly beating the consensus estimate of $0.48, representing a 218% year-over-year increase. Revenue reached $1.898 billion, surpassing the $1.808 billion estimate, while gross margin expanded to 16.8% from 12.0% a year earlier. However, the company guided Q3 revenue to $1.95 billion to $2.05 billion, with a midpoint of $2.0 billion, notably below analyst expectations of $2.1 billion. This guidance shortfall became the primary catalyst for heavy selling, with the stock already plunging over 24% during regular trading before the overnight session extended losses.

Morgan Stanley raised its price target modestly to $70 while maintaining an Equalweight rating, noting the company deserves credit for strong Q2 execution. The stock had previously rallied over 12% following a $1.5 billion multi-year advanced packaging partnership with Nvidia, amplifying profit-taking pressure.

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