ASE Technology (NYSE:ASX) Shares Down 8.9% on Disappointing Earnings

Key Points

• ASE Technology's stock fell 8.9% to $9.42, with a significant trading volume decline of 75% compared to its average session volume.
• The company reported earnings per share of $0.10, missing estimates of $0.12, and generated $4.59 billion in revenue, falling short of the consensus estimate.
• ASE Technology announced an increase in its annual dividend to $0.359 per share, with a yield of 230.0%, payable on August 6th.

ASE Technology Holding Co., Ltd. (NYSE:ASX - Get Free Report) dropped 8.9% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $9.30 and last traded at $9.42. Approximately 2,815,414 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 11,285,112 shares. The stock had previously closed at $10.33.

The semiconductor company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.14 by ($0.03). ASE Technology had a return on equity of 10.33% and a net margin of 5.48%. The company had revenue of $5.07 billion during the quarter, compared to the consensus estimate of $150.44 billion.

ASE Technology Increases Dividend

The firm also recently disclosed an annual dividend, which will be paid on Wednesday, August 6th. Investors of record on Wednesday, July 2nd will be given a dividend of $0.359 per share. The ex-dividend date of this dividend is Wednesday, July 2nd. This represents a dividend yield of 230.0%. This is a boost from ASE Technology's previous annual dividend of $0.32. ASE Technology's payout ratio is currently 55.32%.

Institutional Investors Weigh In On ASE Technology

A number of institutional investors have recently modified their holdings of the business. Y Intercept Hong Kong Ltd bought a new stake in shares of ASE Technology during the 2nd quarter valued at about $8,040,000. Envestnet Asset Management Inc. grew its position in shares of ASE Technology by 4.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 2,437,846 shares of the semiconductor company's stock valued at $25,183,000 after buying an additional 105,491 shares during the last quarter. Oppenheimer Asset Management Inc. grew its position in shares of ASE Technology by 60.5% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 648,743 shares of the semiconductor company's stock valued at $6,702,000 after buying an additional 244,611 shares during the last quarter. Freedom Investment Management Inc. grew its position in shares of ASE Technology by 3.4% during the 2nd quarter. Freedom Investment Management Inc. now owns 40,219 shares of the semiconductor company's stock valued at $415,000 after buying an additional 1,312 shares during the last quarter. Finally, Ethic Inc. grew its position in shares of ASE Technology by 6.3% during the 2nd quarter. Ethic Inc. now owns 380,595 shares of the semiconductor company's stock valued at $4,030,000 after buying an additional 22,502 shares during the last quarter. Institutional investors own 6.80% of the company's stock.

ASE Technology Trading Down 0.6%

The company has a current ratio of 1.02, a quick ratio of 0.79 and a debt-to-equity ratio of 0.57. The firm has a market cap of $21.97 billion, a P/E ratio of 21.16, a P/E/G ratio of 0.56 and a beta of 1.22. The business's 50-day moving average is $10.19 and its two-hundred day moving average is $9.78.

About ASE Technology

ASE Technology Holding Co, Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology.