Benzinga | Jul 29, 2021 06:45AM EDT

ASE Technology Beats On Q2 Earnings, Notes Margin Expansion

* ASE Technology Holding Co Ltd (NYSE:ASX) reported second-quarter FY21 revenue growth of 18% year-on-year to NT$126.9 billion.

* Net Revenues from Packaging rose 19.6% Y/Y to NT$64.1 billion, Testing declined 8% to NT$11.7 billion, and EMS increased 23.8% to NT$49.1 billion.

* The gross margin increased by about 200 bps to 19.5%. The operating margin expanded by about 260 bps to 10.4%.

* Earnings per ADS of $0.16 beat the analyst consensus of $0.14.

* The company held NT$53 billion in cash and equivalents as of June 30, 2021, and generated NT$18.2 billion in operating cash flow in the quarter.

* Price action: ASX shares closed higher by 0.98% at $8.22 on Wednesday.