Amkor Technology Inc.  (AMKR) Trade Now »     Rate AMKR  -  Discuss AMKR  -  Add to Watch List        

Sometimes, you can tell how a stock will react to an earnings report; and other times, you get surprised.

Consider, for instance Amkor Technology (AMKR), a semiconductor test equipment company which this afternoon posted Q2 revenue of $691 million and profits of 28 cents a share, excluding a one-time gain. That compares with Street estimates of $697.9 million and 28 cents.

For Q3, the company sees revenue up 4%-6%, which implies $718.6 million to $732.5 million, and EPS of 24-28 cents. The Street had been looking for $740.3 million and 35 cents.

Amkor Technology (AMKR), which provides semiconductor test and assembly services, late yesterday said it now sees Q2 sales down 1%-2% from Q1 levels. The company had previously forecast an increase of 1%-3% sequentially.

The company said the lower guidance reflects “the previously disclosed disruptions in production resulting from the implementation of an enterprise resource planning system at its Philippine facilities.” Amkor said it so far can’t say what impact the lower sales will have on gross margin or net income.

In pre-market trading, Amkor is down 67 cents, or 7%, at $8.85.

Amkor Technology (AMKR) shares are sharply higher this morning after American Technology Research analyst Bill Ong raised his rating on the stock to Buy from Neutral. He set a $14 price target on the stock.

Ong thinks the company, a semiconductor packaging and test provider, should get a boost from the growth in the high-end handset market. “High-end mobile chip units require stacked die assembly/packaging that would likely drive [second half] growth for Amkor, and likely offset current low-end handset unit weakness given the better ASPs and margins at the high end,” he writes.

American Technology Research analyst Bill Ong today raised his rating on Kulicke & Soffa (KLIC) to Buy from Neutral, asserting that second half demand should be driven by stabilization of orders for wire bonders, as well as strength in high-end handsets. In a call similar to his upgrade today of Amkor (AMKR), Ong writes that the company should benefit from growing demand for high-end handsets that require advanced wire bonder tools.

Ong set a price target on the stock of $10. He raised his EPS estimate for the September 2009 fiscal year to 60 cents from 50 cents.