ASE Technology (NYSE:ASX) Announces Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• ASE beat expectations with Q1 EPS of $0.20 vs. $0.17 consensus and revenue of $5.43B, reported record ATM revenue of TWD 112.4B (up 30% y/y) and raised LEAP 2026 revenue guidance by ~10% to over $3.5B.
• Management gave a strong Q2 outlook—consolidated revenue +7–9% q/q, ATM revenue +9–11% q/q—and expects consolidated gross margin to rise 20–100 bps with ATM gross margin guided to 26–27% targeting the upper end of structural margins in H2.
• The company is increasing CapEx (additional TWD 0.9B for buildings and ~$0.6B for machinery) and will fund much of it with borrowing, which will raise depreciation and pressure near‑term free cash flow into 2027.

ASE Technology (NYSE:ASX - Get Free Report) announced its earnings results on Wednesday. The semiconductor company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.03, Zacks reports. ASE Technology had a net margin of 6.31% and a return on equity of 12.06%. The company had revenue of $5.43 billion during the quarter, compared to the consensus estimate of $5.28 billion.

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

• Company reported record ATM revenue of TWD 112.4 billion (up 2% q/q, 30% y/y) and said LEAP services are the main growth driver, prompting management to raise LEAP 2026 revenue guidance by ~10% to over $3.5 billion.
• Management gave a strong Q2 outlook—consolidated revenue +7–9% q/q, ATM revenue +9–11% q/q—with consolidated gross margin expected to rise 20–100 bps and ATM gross margin guided to 26–27%, targeting the upper end of structural margins in H2.
• The company is increasing CapEx (additional TWD 0.9bn for buildings and ~$0.6bn machinery) and expects heavy spending into 2027, with funding largely via additional borrowing, which will raise depreciation and pressure near‑term free cash flow.
• Operationally, full‑process LEAP lines require large, paired equipment sets that are still in tuning/qualification—depreciation is rising faster than revenue and meaningful ramp is expected mainly in Q4, while blended utilization (~80%) is distorted by capacity installs and consolidations.

ASE Technology Stock Performance

Shares of ASX stock opened at $30.58 on Thursday. The business has a fifty day moving average of $24.24 and a 200 day moving average of $19.26. ASE Technology has a 1 year low of $8.46 and a 1 year high of $32.31. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.26 and a quick ratio of 1.00. The firm has a market capitalization of $67.99 billion, a price-to-earnings ratio of 52.72, a price-to-earnings-growth ratio of 1.28 and a beta of 1.46.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ASX. Jones Financial Companies Lllp boosted its position in ASE Technology by 16.9% in the first quarter. Jones Financial Companies Lllp now owns 13,425 shares of the semiconductor company's stock valued at $118,000 after buying an additional 1,943 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in ASE Technology by 15.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,775,272 shares of the semiconductor company's stock valued at $50,591,000 after acquiring an additional 780,651 shares during the period. Geode Capital Management LLC lifted its stake in ASE Technology by 16.3% during the 2nd quarter. Geode Capital Management LLC now owns 13,576 shares of the semiconductor company's stock valued at $140,000 after acquiring an additional 1,901 shares during the period. Legal & General Group Plc boosted its holdings in shares of ASE Technology by 261.9% in the 2nd quarter. Legal & General Group Plc now owns 15,647 shares of the semiconductor company's stock valued at $162,000 after acquiring an additional 11,324 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its stake in shares of ASE Technology by 537.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,928 shares of the semiconductor company's stock worth $51,000 after acquiring an additional 4,155 shares during the period. 6.80% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Zacks Research upgraded ASE Technology from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Wall Street Zen raised ASE Technology from a "hold" rating to a "buy" rating in a report on Sunday, April 5th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of ASE Technology in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, ASE Technology currently has an average rating of "Hold".

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.