Amkor Just Crushed Earnings. Here’s Why Wall Street Still Punished AMKR Stock.

Amkor Technology (AMKR) reported its second-quarter results on July 27. By almost every measure, the quarter was a record. Revenue reached $1.90 billion, up roughly 26% from a year earlier. The company beat the high end of its own guidance. Earnings of $0.70 a share came in far ahead of the $0.48 that analysts expected. EBITDA of $400 million also comfortably beat the estimates. The growth came from computing and the automotive and industrial markets. Both of these achieved quarterly records on AI data center demand. Margins also widened for a clear reason. Over the past two quarters, average factory utilization climbed from the 50s into the 70s, with several platforms now even running at full capacity.

Despite such a strong performance, the stock fell 6.54% after the report. The reason was the outlook, not the quarter. Amkor guided third-quarter revenue to about $2 billion at the midpoint, just below Wall Street’s $2.09 billion consensus. The outlook had another weak spot. Communications revenue is set to fall in the next quarter, with Android sales already down 20% due to memory supply constraints. The stock had more than doubled since late March, hitting a 52-week high of $96.68 on June 22. At that level, expectations were high enough that a soft guidance number was all it took.