ASE Technology Falls Short Of Revenue Goals, Delivers Mixed Q1 Results
Portfolio Pulse from Anusuya Lahiri
ASE Technology Holding Co, Ltd (NYSE:ASX) reported Q1 2024 revenue of $4.24 billion, missing the consensus of $4.41 billion, with a year-on-year growth of 1.5% but a quarter-on-quarter decline of 17.3%. The ATM business grew 0.8% Y/Y, while EMS revenues increased by 2.8% Y/Y. Gross margin improved to 15.7%, but operating margin fell slightly to 5.7%. Diluted EPS was $0.084, below the expected $0.100. Capital expenditures were $228 million. ASX stock is down 2.2% to $10.13, impacting related ETFs SOXX and TDIV.
April 25, 2024 | 3:39 pm
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NEUTRAL IMPACT
ASE Technology's performance may influence SOXX due to its inclusion in the ETF, potentially affecting investor sentiment.
While ASE Technology's results are significant, SOXX's diversified nature means the impact is diluted across many holdings. The direct effect on SOXX may be limited but worth monitoring.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
ASE Technology's Q1 results could have a minor impact on TDIV, given ASE's role in the technology dividend space.
TDIV's focus on technology dividends means ASE's performance could influence perceptions, but the effect is likely to be minor due to the fund's diversified portfolio.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
ASE Technology reported lower than expected Q1 2024 revenues and EPS, with a slight increase in gross margin but a decrease in operating margin. Stock price fell 2.2%.
The miss on both revenue and EPS expectations, combined with the stock price reaction, suggests a negative short-term impact. The mixed results in margins may cause concern among investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100