ASE Technology (NYSE:ASX – Get Free Report) released its quarterly earnings results on Thursday. The semiconductor company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.06, FiscalAI reports. ASE Technology had a net margin of 8.52% and a return on equity of 16.66%. The business had revenue of $81.66 million for the quarter, compared to analyst estimates of $5.96 billion.
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 NYSE:ASX traded up $0.31 during midday trading on Friday, hitting $35.08. The stock had a trading volume of 8,762,870 shares, compared to its average volume of 9,449,534. The company’s 50-day moving average price is $39.01 and its 200-day moving average price is $29.64. ASE Technology has a fifty-two week low of $9.30 and a fifty-two week high of $45.51. The company has a quick ratio of 0.89, a current ratio of 1.15 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $78.00 billion, a P/E ratio of 40.79 and a beta of 1.69.
ASE Technology Increases Dividend
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the company. UMB Bank n.a. bought a new stake in ASE Technology during the fourth quarter worth $32,000. WealthCollab LLC increased its stake in shares of ASE Technology by 55.2% in the 2nd quarter. WealthCollab LLC now owns 4,850 shares of the semiconductor company’s stock valued at $50,000 after purchasing an additional 1,726 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of ASE Technology by 537.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,928 shares of the semiconductor company’s stock worth $51,000 after buying an additional 4,155 shares in the last quarter. Headlands Technologies LLC lifted its position in shares of ASE Technology by 549.8% during the 2nd quarter. Headlands Technologies LLC now owns 5,153 shares of the semiconductor company’s stock worth $53,000 after buying an additional 4,360 shares during the last quarter. Finally, Transamerica Financial Advisors LLC lifted its position in shares of ASE Technology by 24.8% during the 4th quarter. Transamerica Financial Advisors LLC now owns 3,435 shares of the semiconductor company’s stock worth $55,000 after buying an additional 683 shares during the last quarter. 6.80% of the stock is owned by institutional investors.
Analyst Ratings Changes
A number of research analysts have issued reports on ASX shares. Wall Street Zen upgraded shares of ASE Technology from a “hold” rating to a “buy” rating in a research report on Sunday, April 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of ASE Technology in a research report on Tuesday, June 9th. Finally, Zacks Research upgraded ASE Technology from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy”.
View Our Latest Analysis on ASE Technology
ASE Technology News Summary
Here are the key news stories impacting ASE Technology this week:
- Positive Sentiment: ASE reported second-quarter earnings per share of $0.29, exceeding the $0.23 analyst consensus. Consolidated revenue rose 26.7% year over year and 10.0% sequentially to NT$191.1 billion, supporting the view that demand remains strong across its semiconductor assembly and testing businesses. ASE Technology second-quarter financial results
- Positive Sentiment: Management said AI demand is driving expanded advanced-packaging and testing capacity. ASE expects fourth-quarter ATM gross margin to exceed 30% and is targeting a doubling of LEAP revenue in 2027, potentially improving the company’s growth and profitability profile. ASE signals margin and LEAP growth targets
- Positive Sentiment: ASE raised its 2026 capital-expenditure plan by $2 billion to approximately $10.5 billion because of strong customer demand. The investment is intended to increase AI-related capacity and could strengthen ASE’s competitive position in advanced packaging. ASE raises 2026 capital expenditure
- Negative Sentiment: The larger investment program increases near-term capital requirements and execution risk. Investors will monitor whether AI-driven revenue growth and anticipated margin expansion are sufficient to offset higher spending and depreciation.
About ASE Technology
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.
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