Amkor Technology, Inc. (NASDAQ:AMKR) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of US$1.4b were what the analysts expected, Amkor Technology surprised by delivering a (statutory) profit of US$0.24 per share, an impressive 123% above what was forecast. 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.

Check out our latest analysis for Amkor Technology

After the latest results, the eight analysts covering Amkor Technology are now predicting revenues of US$6.54b in 2024. If met, this would reflect an okay 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.4% to US$1.64. Before this earnings report, the analysts had been forecasting revenues of US$6.46b and earnings per share (EPS) of US$1.55 in 2024. So the consensus seems to have become somewhat more optimistic on Amkor Technology's earnings potential following these results.

The consensus price target rose 5.5% to US$38.34, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Amkor Technology analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$33.70. This is a very narrow spread of estimates, implying either that Amkor Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Amkor Technology's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that Amkor Technology is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amkor Technology's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Amkor Technology you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.