HSINCHU - ChipMOS TECHNOLOGIES INC. (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), a leading provider of outsourced semiconductor assembly and test services, announced a significant revenue beat for the fourth quarter of 2023, with shares jumping over 6% in response.
The company reported a 22.2% increase in fourth-quarter revenue compared to the same period last year, and a 2.6% rise from the third quarter of 2023.
The company posted fourth-quarter earnings per share (EPS) of $0.43, slightly above the analyst estimate of $0.42. Revenue for the quarter was also higher than expected, coming in at $187 million against the consensus estimate of $176.72 million. This revenue beat is the primary driver behind the stock's positive movement, reflecting investor confidence in the company's financial performance.
Despite the robust fourth-quarter results, the full-year revenue for 2023 saw a decline of 9.2% compared to the previous year. However, the company's net earnings more than tripled to NT$0.66 per common share in the fourth quarter from NT$0.22 in the same quarter of the previous year. This increase in earnings is a testament to the company's improved profitability, despite the full-year earnings showing a decrease from NT$4.64 to NT$2.60 per common share.
The company also reported a strong financial position, with a balance of cash and cash equivalents of NT$12,354.0 million or US$403.5 million. Additionally, a dividend of NT$1.8 per share has been authorized by the board, pending shareholder approval at the May 2024 Annual General Meeting.
In a statement, the company attributed the strong fourth-quarter performance to increased gross margins, which rose by 560 basis points compared to the fourth quarter of 2022, and by 420 basis points from the third quarter of 2023. The management expressed optimism about the company's ability to navigate market challenges and continue delivering value to shareholders.
Investors have reacted positively to the news, with the stock price reflecting a 6.04% increase, indicating strong market approval of the company's latest financial results.
InvestingPro Insights
In light of ChipMOS TECHNOLOGIES INC.'s impressive fourth-quarter revenue beat, it's important to consider additional metrics that could provide investors with a broader understanding of the company's stock performance and future potential. According to InvestingPro data, ChipMOS (NASDAQ: IMOS) has a market capitalization of $21.27 billion, which underscores its significant presence in the semiconductor industry. Despite a challenging year with a revenue decline of 20.71% over the last twelve months as of Q3 2023, the company has managed a quarterly revenue growth of 6.24% in Q3 2023, indicating some resilience and potential for recovery.
InvestingPro Tips highlight that ChipMOS is a prominent player in the Semiconductors & Semiconductor Equipment industry, known for its low price volatility, which may appeal to investors looking for stability in their portfolios. The company has also maintained dividend payments for 11 consecutive years, with a dividend yield of 4.15%, which could be attractive for income-focused investors. It's worth noting that ChipMOS is trading near its 52-week high, reflecting investor confidence and market sentiment that align with the positive reaction to the company's latest earnings report.
Investors interested in gaining deeper insights can explore additional InvestingPro Tips for ChipMOS, which are available at https://www.investing.com/pro/IMOS. There are over 9 additional tips listed, including expectations around profitability and net income trends. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more value to your investment research and decision-making process.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.