Amkor Technology, Inc. (NASDAQ:AMKR) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.3% to hit US$1.5b. Amkor Technology also reported a statutory profit of US$0.22, which was an impressive 38% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Amkor Technology's nine analysts are now forecasting revenues of US$6.55b in 2025. This would be an okay 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 9.6% to US$1.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.26b and earnings per share (EPS) of US$1.09 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

The analysts increased their price target 11% to US$24.38, perhaps signalling that higher revenues are a strong leading indicator for Amkor Technology's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Amkor Technology, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$19.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Amkor Technology's growth to accelerate, with the forecast 7.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Amkor Technology is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Amkor Technology going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Amkor Technology's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.