Taiwan's ASE Technology Q3 revenue jumps 45%, net income more than doubles

Overview

• Taiwan semiconductor manufacturing services provider's unaudited Q3 revenue rose 45% yr/yr, net income more than doubled

• Gross margin improved to 22.1% from 21.0% in prior quarter

• Company reported higher operating margins in both ATM and EMS segments

Outlook

• Company did not provide specific guidance for future quarters or full-year results in its press release

Result Drivers

• ATM SEGMENT GROWTH - ATM segment revenue rose 51% yr/yr and 20.1% sequentially, with gross margin up 3.3 percentage points to 30.6%

• EMS SEGMENT EXPANSION - EMS segment revenue increased 35% yr/yr and 42% sequentially, though gross margin declined slightly

• CUSTOMER CONCENTRATION - Revenue share from top customers increased in both ATM and EMS segments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy."

• Wall Street's median 12-month price target for ASE Technology Holding Co., Ltd. is $50.02, about 13.9% above its October 28 closing price of $43.92

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• Oct 26 - Amkor Technology Q3 sales slightly miss estimates on weak Communications

• Oct 28 - Taiwan's UMC Q3 revenue rises on wafer shipments growth

• Oct 28 - Silicon Motion Q3 revenue more than doubles, beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)