ASE Technology Holding’s (3711) Earnings Miss Estimate, Reports Q1 Net Income of NT$5.68 Billion

ASE Technology Holding on Smartkarma

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ASE Technology Holding (ASEH) is receiving positive analyst coverage on independent investment research network, Smartkarma. Analyst Patrick Liao‘s report, “Expects 2Q24F Back to Normal Seasonality and 2H24 Will Start the Recovery,” indicates that ASEH anticipates completing inventory adjustments in the first half of 2024, with expectations of growth acceleration in the second half of the year. The report also predicts growth in IC-ATM similar to the semiconductor logic market in 2024, with significant customer recovery expected by at least 3Q24.

Another bullish report by Vincent Fernando, CFA, titled “ASE’s Results Shows Chip Packaging & Testing Utilization Is Still Low, However Improvement Expected,” highlights ASE’s cautious optimism for the industry’s improvement next year. The report mentions that despite low utilization in Semiconductor Assembly, Testing, and Manufacturing (ATM) capacity, 3Q23 results met analyst estimates with a slight increase in gross margin. ASE’s management is cautiously optimistic about industry improvement, though more guarded compared to other players in the industry.

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A look at ASE Technology Holding Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

ASE Technology Holding Co., Ltd. is positioned for a notable long-term outlook as per Smartkarma Smart Scores. The company excels in areas such as dividends and momentum, scoring a high 5 in dividends and a solid 4 in momentum. With a moderate score in value and growth at 3 each, ASE Technology Holding demonstrates stability and potential for future expansion. However, resilience is an area of slight concern with a score of 2. Overall, the company seems well-equipped to provide value to its investors while maintaining a steady growth trajectory.

ASE Technology Holding Co., Ltd. is a Taiwan-based company specializing in assembly and testing services, including semiconductor testing and packaging. The company’s focus on dividends and its strong momentum are promising indicators for investors looking for stable returns and growth potential. While facing some challenges in resilience, the company’s overall outlook remains positive, leveraging its core strengths to navigate market fluctuations and capitalize on emerging opportunities.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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