ASE Technology (NYSE:ASX) Posts Quarterly Earnings Results

ASE Technology (NYSE:ASX) issued its quarterly earnings results on Thursday. The semiconductor company reported $0.29 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.06, FiscalAI reports. The firm had revenue of $81.66 million for the quarter, compared to analysts’ expectations of $5.96 billion. ASE Technology had a return on equity of 13.48% and a net margin of 7.03%.

Here are the key takeaways from ASE Technology’s conference call:

• Strong Q2 performance: Consolidated revenue rose 27% year over year to TWD 191.1 billion, while operating profit more than doubled to TWD 21.1 billion and operating margin expanded to 11.1%.
• The ATM business reached record revenue of TWD 126.1 billion, up 36% year over year, driven by higher LEAP mix, stronger utilization and operating leverage; management expects ATM revenue to grow approximately 35% for the full year.
• Management raised its LEAP outlook, saying 2026 revenue is tracking about $200 million above the prior $3.5 billion target and targeting a doubling of LEAP revenue in 2027. ATM gross margin is expected to continue improving and potentially exceed 30% in the fourth quarter.
• Q3 guidance calls for consolidated revenue growth of 21%-22% sequentially, with a 20.5%-21.5% gross margin and 11.5%-12.5% operating margin; ATM revenue is expected to rise 11%-13% sequentially.
• ASE plans to add another $2 billion to 2026 capital expenditures, bringing the total to roughly $10.5 billion, and acknowledged that heavy investment may keep free cash flow negative for some time. Total interest-bearing debt rose TWD 40.9 billion sequentially to TWD 306.2 billion.

ASE Technology Price Performance

Shares of ASX traded up $0.66 during midday trading on Friday, hitting $35.42. 4,294,075 shares of the company traded hands, compared to its average volume of 9,095,325. ASE Technology has a one year low of $9.30 and a one year high of $45.51. The firm has a market cap of $78.77 billion, a P/E ratio of 51.90 and a beta of 1.69. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.15 and a quick ratio of 0.89. The stock has a 50-day moving average of $39.01 and a 200-day moving average of $29.60.

ASE Technology Increases Dividend

The business also recently announced an annual dividend, which will be paid on Friday, August 7th. Shareholders of record on Monday, July 6th will be issued a dividend of $0.4171 per share. This represents a yield of 96.0%. The ex-dividend date of this dividend is Monday, July 6th. This is a boost from ASE Technology’s previous annual dividend of $0.36. ASE Technology’s payout ratio is presently 45.59%.

Institutional Trading of ASE Technology

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jones Financial Companies Lllp boosted its holdings in ASE Technology by 16.9% in the 1st quarter. Jones Financial Companies Lllp now owns 13,425 shares of the semiconductor company’s stock valued at $118,000 after purchasing an additional 1,943 shares during the period. Goldman Sachs Group Inc. raised its position in shares of ASE Technology by 15.6% in the first quarter. Goldman Sachs Group Inc. now owns 5,775,272 shares of the semiconductor company’s stock worth $50,591,000 after buying an additional 780,651 shares in the last quarter. Geode Capital Management LLC boosted its stake in ASE Technology by 16.3% during the second quarter. Geode Capital Management LLC now owns 13,576 shares of the semiconductor company’s stock valued at $140,000 after buying an additional 1,901 shares during the period. Legal & General Group Plc boosted its stake in ASE Technology by 261.9% during the second quarter. Legal & General Group Plc now owns 15,647 shares of the semiconductor company’s stock valued at $162,000 after buying an additional 11,324 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in ASE Technology by 537.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,928 shares of the semiconductor company’s stock valued at $51,000 after buying an additional 4,155 shares during the period. Institutional investors own 6.80% of the company’s stock.

More ASE Technology News

Here are the key news stories impacting ASE Technology this week:

• Positive Sentiment: Q2 results exceeded expectations: ASE reported revenue of NT$191.1 billion, up 26.7% year over year and 10.0% sequentially. Adjusted earnings per share of $0.29 surpassed the $0.23 consensus estimate, while net margin was 7.03%. ASE Technology second-quarter results
• Positive Sentiment: AI demand is driving capacity expansion: Management is increasing advanced packaging and testing capacity to support artificial intelligence and high-performance computing customers. The company raised 2026 capital expenditures by $2 billion to approximately $10.5 billion, signaling confidence in sustained demand. Reuters capex report
• Positive Sentiment: Profitability and LEAP growth expectations improved: ASE indicated fourth-quarter advanced test and manufacturing gross margin could exceed 30% and is targeting a doubling of LEAP revenue in 2027. LEAP and other advanced packaging offerings are benefiting from AI accelerator demand. ASE margin and LEAP outlook
• Neutral Sentiment: Execution and valuation remain considerations: The sizable investment program should support long-term growth but increases near-term capital requirements and execution risk. With the shares trading well above the 200-day moving average and at a relatively high earnings multiple, further gains may depend on continued earnings upgrades and delivery on the AI expansion plan.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ASE Technology in a report on Tuesday, June 9th. Zacks Research raised shares of ASE Technology from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 5th. Finally, Wall Street Zen upgraded shares of ASE Technology from a “hold” rating to a “buy” rating in a research note on Sunday, April 5th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Buy”.

ASE Technology Company Profile

ASE Technology Holding Co, Ltd. (NYSE: ASX), commonly referred to as ASE, is a Taiwan-based provider of semiconductor assembly and testing services. The company focuses on back-end semiconductor manufacturing and related services that prepare integrated circuits and other semiconductor devices for final use. Its core activities include advanced IC packaging, final testing, wafer probing, and related engineering and supply-chain support for semiconductor customers.

ASE offers a range of products and technical capabilities designed to meet increasingly complex packaging and system-in-package requirements.