Amkor Technology, Inc. (NASDAQ:AMKR) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of US$1.3b arriving 3.6% ahead of forecasts. Statutory earnings per share (EPS) were US$0.09, 5.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Amkor Technology's nine analysts currently expect revenues in 2025 to be US$6.21b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 7.8% to US$1.18 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$6.21b and earnings per share (EPS) of US$1.39 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

View our latest analysis for Amkor Technology

The average price target fell 11% to US$24.43, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Amkor Technology at US$34.78 per share, while the most bearish prices it at US$18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2025. This indicates a significant reduction from annual growth of 6.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 16% annually for the foreseeable future. It's pretty clear that Amkor Technology's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Amkor Technology's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Amkor Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Amkor Technology analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Amkor Technology that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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