TAIPEI - ASE Technology Holding Co (NYSE:ASX)., Ltd. (TWSE: 3711, NYSE: ASX), a global leader in semiconductor assembly and testing services, has reported a decrease in net income for the fourth quarter of 2023 compared to the same period last year. The unaudited net revenues for the quarter were NT$160,581 million, marking a 9.5% decrease year-over-year but a 4.2% increase from the previous quarter. The net income attributable to shareholders was NT$9,392 million, a decline from NT$15,730 million in the fourth quarter of 2022 but an improvement from NT$8,776 million in the third quarter of 2023.
The company's basic earnings per share (EPS) for the quarter stood at NT$2.18, down from NT$3.77 in the fourth quarter of the previous year and slightly up from NT$2.04 in the third quarter of 2023. The diluted EPS followed a similar trend, registering at NT$2.13 for the quarter compared to NT$3.57 in the same period the prior year and NT$2.00 in the preceding quarter.
For the full year of 2023, ASE Technology reported unaudited net revenues of NT$581,914 million and a net income of NT$31,725 million, with basic and diluted EPS at NT$7.39 and NT$7.18, respectively. These figures represent a decrease from the full year of 2022.
The company's gross margin in the fourth quarter was 16.0%, a slight decrease from 16.2% in the third quarter. Operating margin remained steady at 7.4% for both quarters. The cost of revenues for the quarter increased to NT$134,820 million, with raw material costs accounting for 55% of the total net revenues.
ASE Technology's capital expenditures in the fourth quarter totaled US$234 million, with the majority allocated to packaging and testing operations. For the entire year of 2023, capital expenditures amounted to US$914 million.
The company mentioned a slight reduction in its workforce, with total employees numbering 92,908 at the end of December 2023, compared to 93,289 at the end of September 2023.
This financial update is based on a press release statement and reflects the company's performance as of the end of 2023. The results are unaudited and subject to adjustments following a full audit.
InvestingPro Insights
As we assess the financial performance of ASE Technology Holding Co., Ltd. (ASX), it's clear that the company's commitment to shareholder returns remains strong. With a dividend yield of 4.57% as of the end of 2023, ASE Technology not only pays a significant dividend but has also raised its dividend for three consecutive years, showcasing its dedication to consistent shareholder value. This is further emphasized by the company maintaining dividend payments for six consecutive years.
InvestingPro Tips highlight the company's resilience in terms of stock stability, with ASE Technology generally trading with low price volatility. This is an important factor for investors seeking stable returns in the dynamic semiconductor industry. Moreover, the company has managed to deliver a strong return over the last three months, with a 21.92% total return, reflecting investor confidence and market performance.
On the financial metrics front, ASE Technology's market capitalization stands at a robust $18.7 billion, and despite a sales decline anticipated in the current year, the company is expected to remain profitable. The P/E ratio is currently at 15.45, offering an insight into the company's valuation relative to its earnings.
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