Why Amkor Shares Took Off

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Amkor Technology are up by over 10% today after beating expectations on both top and bottom lines in its first-quarter earnings report.

So what: Amkor's revenue rose 5% year over year, to $688 million, which easily beat the $672.4 million consensus. Earnings of $0.07 per share also came in well ahead of the $0.03 consensus. Guidance also appears favorable, as Amkor now expects between $730 million and $780 million on the top line, and between $0.09 and $0.19 in EPS, against consensus estimates of $719.4 million and $0.11 per share, respectively.

Now what: Even after the pop, Amkor's valuation seems reasonable, and its growth prospects are such that the forward P/E is under five at the moment. The only real area of concern is Amkor's wide margin of error in its second-quarter guidance, which, despite representing a solid advance on even the low ends, could indicate a bit of uncertainty. It's certainly worth a second look, and this good news might even start to reverse a long-term downtrend that's plagued Amkor shareholders for years.

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The article Why Amkor Shares Took Off originally appeared on Fool.com.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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