Why Amkor Technology, Inc. (NASDAQ:AMKR) Is Moving Up

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Shares in Amkor Technology, Inc. (NASDAQ:AMKR) have posted back-to-back gains over the last two trading sessions, after the company declared third quarter earnings.

The stock added 3.52% to close at $10.59 on Wednesday with 2.48 million shares changing hands.

Globally, Amkor is one of the world’s largest providers of outsourced semiconductor packaging and test services.

Technically, on the weekly chart, the stock hammered out multiple bottoms around the $4 level between August 2015 and March 2016. During mid-2011 and mid-2013 that level also acted as a strong support. On current reckoning, the stock could take a shy at the June 2014 high of $12.27.

Amkor Technology, Inc. (NASDAQ:AMKR) posts a solid third quarter

During the third quarter, Amkor reported EPS of $0.25, which beat estimates by $0.04, and revenue of $1.09 billion, which beat by $30 million and was up 48.4% year on year.

“Third quarter results were at the high end of our guidance,” said Steve Kelley, Amkor’s president and chief executive officer in a statement. “We saw notable strength in smartphones across multiple tiers. Sales in Automotive, Greater China and advanced SiP were all up sequentially reflecting the continued success of our strategic initiatives in these key areas. Our 18% sequential growth in sales generated substantial cash and profits for the quarter.”

The company generated over $100 million in free cash flow during Q3.

Amkor Technology, Inc. (NASDAQ:AMKR) projections

For the fourth quarter, Amkor expects net sales in the range of $990 million – $1.07 billion and net income in the range of $46 million – $82 million.

For full year 2016, Amkor expects to clock net sales of $3.9 billion and net income of $130 million. Capital expenditure for the year is expected to be $650 million.

“We expect to be free cash flow positive for the full year. With our strong cash position, bolstered by free cash flow, we anticipate using cash on hand to pay down around $50 million of debt in the fourth quarter,” the company said on the conference call.

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