Amkor Technology NASDAQ:AMKR fell 23.78% intraday despite reporting record second-quarter net sales up 26% to $1.90 billion and diluted earnings of $0.70 a share. Analysts were expecting $1.815 billion and $0.48.
Gross margin widened to 16.8% from 12.0% a year earlier, operating income more than doubled to $200 million, and EBITDA reached $400 million against $259 million. Advanced products, covering flip chip, memory and wafer-level processing, contributed $1.56 billion of the total, with Computing and Automotive & Industrial both setting records. Free cash flow was $198.6 million negative.
Third-quarter guidance is where it came short. Amkor guided net sales of $1.95 billion to $2.05 billion, gross margin of 18.5% to 19.5% and earnings of $0.72 to $0.82 a share, with the revenue midpoint landing below what analysts expected. Full-year capital spending stays at $2.5 billion to $3 billion, set against $2.5 billion of cash and short-term investments and an equal amount of total debt.