Amkor Tech (AMKR) topped earnings estimates to bring the bottom line back into the black. Estimates and shares are on their way up.
Company Description
Amkor makes advanced semiconductor assemblies and provides test services for major semi companies and OEM’s. Offices are located across the U.S., Asia and Europe.
Net Income Up 9%
On Feb 10 Amkor released fourth-quarter results that showed sales of $668 million, up 8% sequentially. This led to net income of $88 million, up 9% from 81 million since last quarter.
The Zacks #1 Rank stock earned 33 cents per share, up from 31 cents last quarter and a loss of $3.40 one year ago. This mark came in well above the consensus of 21 cents, for the third surprise in the past 4 quarters.
Estimates Jump
Following the earnings release, Amkor analysts raised full-year 2010 estimates. The consensus is now 86 cents, up 13 cents. Next year’s forecasts are averaging $1.01, up from 72 cents.
These levels represent year-over-year growth of 71% and 18% for Amkor.
Low Valuations
Shares of AMKR are trading at less than 8 times forward estimates. The PEG ratio is just 0.7 times and the price-to-sales is 0.55 times.
The Chart
After a bout of volatility following the earnings release, shares have developed a nice upward trend. Given the rising estimates, this momentum could continue for some time.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
