Amkor shares tumble after weak Q3 rev guidance; chip rout deepens
BUZZ-Amkor shares tumble after weak Q3 rev guidance; chip rout deepens Updates, adds Q3 guidance
** Semiconductor packaging provider Amkor Technology's AMKR.O shares tumble 24.2% to $46 on Tues after its current-qtr rev outlook was shy of Wall Street's expectations, and as chip names continue to sell off
** AMKR on course for steepest daily pct decline since pandemic onset in Mar 2020; this as Philadelphia SE Semiconductor index .SOX drops 4% as concerns about hefty corporate outlays and rising Chinese competition bite AI chipmakers
** Amkor said late Mon it sees Q3 top line of $1.95-$2.05 bln, while analysts had modeled about $2.1 bln in sales, per LSEG data
** For Q2, sales grew 26% yr/yr to $1.9 bln and adj EPS came in at 70 cents, both topping estimates of $1.81 bln and 48 cents/sh, respectively
** CEO Kevin Engel cited record rev in co's Computing and Automotive and Industrial end markets
** Reacting to the report, Morgan Stanley raised its PT to $70 from $69, while B. Riley reduced its PT to $65 from $75
** Avg rating of 12 analysts covering AMKR stock is 'hold'; median PT $70
** The stock had gained ~54% YTD ahead of results
** On Thurs, Amkor struck a multi-yr, $1.5 bln deal with Nvidia NVDA.O to expand advanced chip packaging and test capacity in the U.S., after entering 11-year partnership with TSMC 2330.TW last month
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))