ReutersReuters

ASE Technology Q3 revenue up on strong semiconductor demand

Refinitiv1 min read

Overview

  • ASE Technology Q3 revenue grows 5.3% yr/yr, sequential increase of 11.8%

  • Net income for Q3 rises to NT$10,870 mln, up from NT$9,733 mln in 3Q24

  • Basic EPS for Q3 increases to NT$2.50 from NT$2.25 in 3Q24

Outlook

  • Company did not provide specific guidance for future quarters or the full year

Result Drivers

  • ATM SEGMENT GROWTH - Net revenues from ATM operations rose 16.9% yr/yr, driven by strong demand for semiconductor assembly and testing services

  • EMS REBOUND - EMS operations saw a sequential revenue increase of 17.4%, despite a yr/yr decline

  • MARGIN IMPROVEMENT - Gross margin increased to 17.1% and operating margin to 7.8% in Q3, reflecting cost management and operational efficiencies

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

T$168.56 bln

Q3 EPS

T$2.41

Q3 Net Income

T$10.87 bln

Q3 Gross Margin

17.10%

Q3 Basic EPS

T$2.50

Q3 EBIT Margin

7.80%

Q3 Pretax Profit

T$13.97 bln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $13.00, about 11% below its October 29 closing price of $14.43

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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