Amkor Technology shares soar on strong 2Q outlook
NEW YORK—Microchip assembly and test company Amkor Technology Inc. soared nearly 30 percent Thursday after it said it expects its second-quarter profit to beat Wall Street forecasts by a wide margin.
The company anticipates profit of 32 to 36 cents per share, while analysts polled by Thomson Financial expect profit of 28 cents per share. Analysts typically exclude one-time costs and gains.
The company also forecast sales of approximately $706.5 million to $720.5 million, while analysts forecast sales of just $700.6 million.
Deutsche Bank analyst Peter Kim praised the company's "sure and steady execution" in the first quarter and described it as a leader in its sector.
"Even stripping out a 5 cent a share currency gain, Amkor delivered a relatively stable operating performance compared to its peers," he said.
Lehman Brothers analyst C.J. Muse said the company's success is driven by its increased share in the video-game chip market. He welcomed Amkor's reduced emphasis on the relatively weak personal computer market.
Amkor customers include Intel Corp., Texas Instruments Inc. and Infineon Technologies A.V.
Shares in the Chandler, Ariz.-based company jumped $2.78, or 29.1 percent, to close at $12.33. They have traded in the past year between $6.14 and $16.29.
