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Amkor Technology's (AMKR) Q4 Earnings: What's in Store?

Amkor Technology, Inc.AMKR is expected to report fourth-quarter 2015 results on Feb 8. Last quarter, the company posted a whopping 300.00% positive earnings surprise.

Let's see how things are shaping up for this announcement.

Factors at Play

Amkor reported better-than-expected third-quarter results mainly driven by favorable exchange rates and a richer mix of assembly and test services.

In the fourth quarter, management expects customers to cautiously manage inventories due to generally soft end-market demand for electronic devices.

Management expects macroeconomic uncertainties and a cautious business climate to contain the general seasonal growth. The company plans to counter these headwinds by increasing focus on manufacturing efficiency and controlling OpEx and capital spending.

Amkor Technology expects fourth-quarter bottom line within (2 cents) to 5 cents per share and revenues in the range of $660 million to $710 million.

Earnings Whispers

Our proven model does not conclusively show that Amkor will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents. Hence, the difference is 0.00%.

Zacks Rank: Amkor's Zacks Rank #3 when combined with 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks, which you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Escalade Inc. ESCA , with an Earnings ESP of +18.18% and a Zacks Rank #2.

The Walt Disney Company DIS , with an Earnings ESP of +2.08% and a Zacks Rank #3.

Time Warner Inc. TWX , with an Earnings ESP of +2.00% and a Zacks Rank #2.

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TIME WARNER INC (TWX): Free Stock Analysis Report

DISNEY WALT (DIS): Free Stock Analysis Report

AMKOR TECH INC (AMKR): Free Stock Analysis Report

ESCALADE INDS (ESCA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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