Amkor’s third quarter performance in 2025 was marked by robust demand for advanced semiconductor packaging, with both revenue and profit exceeding Wall Street expectations. However, the market responded negatively to the results, which management attributed to higher manufacturing costs associated with scaling leading-edge technologies and a product mix concentrated in high material content solutions. CEO Giel Rutten noted, “We executed steep production ramps and achieved record revenue in both the communications and computing end markets,” while also highlighting that increased material content and ongoing investments constrained margin improvement.
Is now the time to buy AMKR? Find out in our full research report (it’s free for active Edge members).
Amkor (AMKR) Q3 CY2025 Highlights:
- Revenue: $1.99 billion vs analyst estimates of $1.94 billion (6.7% year-on-year growth, 2.6% beat)
- EPS (GAAP): $0.51 vs analyst estimates of $0.42 (20.7% beat)
- Adjusted EBITDA: $340 million vs analyst estimates of $315.5 million (17.1% margin, 7.8% beat)
- Revenue Guidance for Q4 CY2025 is $1.83 billion at the midpoint, below analyst estimates of $1.85 billion
- EPS (GAAP) guidance for Q4 CY2025 is $0.43 at the midpoint, beating analyst estimates by 3.8%
- Operating Margin: 8%, in line with the same quarter last year
- Inventory Days Outstanding: 21, down from 26 in the previous quarter
- Market Capitalization: $7.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amkor’s Q3 Earnings Call
-
Benjamin Reitzes (Melius Research) asked about the drivers behind lower gross margin guidance for Q4. CFO Megan Faust explained that higher material content and manufacturing costs from advanced packaging were the main factors weighing on margins.
-
Randy Abrams (UBS) questioned the pipeline for high-density fan-out and 2.5D packaging. CEO Giel Rutten said multiple new products are ramping, and customer interest is high, with broader opportunities expected over the coming quarters.
-
Steven Fox (Fox Advisors) inquired about the Arizona campus investment increase and its impact. Rutten clarified that the higher investment is strictly capacity-driven, not due to inflation, and reflects strong customer demand for U.S. manufacturing.
-
Craig Ellis (B. Riley Securities) probed the outlook for automotive and ADAS (advanced driver-assistance systems) segments. Rutten highlighted continued growth in advanced packaging for automotive, driven by deeper ADAS adoption and inventory normalization.
-
Joseph Moore (Morgan Stanley) asked about potential tightness in advanced packaging supply and pricing. Rutten acknowledged some supply tightness in specific packaging technologies but said pricing remains stable with strong customer partnerships.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of operational improvements and cost reductions in Japan and Vietnam, (2) the rollout and customer adoption of high-density fan-out and advanced packaging technologies, and (3) progress toward completing the Arizona campus expansion and related customer wins. Execution on these fronts will indicate whether Amkor can balance growth investments with improving profitability.
Amkor currently trades at $32.20, down from $33.19 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
