Why ChipMOS Technologies (IMOS) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares of ChipMOS Technologies  (IMOS) are up 1.94% to $24.21 on Wednesday after it reported second quarter revenue of $181.2 million versus the Capital IQ consensus estimate of $179.95 million.

Second quarter 2014 revenue is in-line with the company's guidance, which called for revenue to increase by approximately 8% to 12%, as compared to the first quarter of 2014. 

Revenue for the month of June 2014 was $60.3 million, an increase of 4.7% from the same period in 2013.

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TheStreet Ratings team rates CHIPMOS TECHNOLOGIES LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHIPMOS TECHNOLOGIES LTD (IMOS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • IMOS's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 10.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that IMOS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.42 is high and demonstrates strong liquidity.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CHIPMOS TECHNOLOGIES LTD's earnings per share declined by 12.2% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHIPMOS TECHNOLOGIES LTD increased its bottom line by earning $1.49 versus $0.85 in the prior year.
  • You can view the full analysis from the report here: IMOS Ratings Report
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Chipmos Technologies (IMOS) Upgraded From Hold to Buy