Semiconductor manufacturer Magnachip Semiconductor (NYSE: MX) will be announcing earnings results this Monday after market close. Here’s what you need to know.
Magnachip beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $47.62 million, up 2.6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Is Magnachip a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Magnachip’s revenue to decline 30.8% year on year to $46 million, a reversal from the 8.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Magnachip has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Magnachip’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj posted flat year-on-year revenue, beating analysts’ expectations by 3.6%, and Monolithic Power Systems reported revenues up 18.9%, topping estimates by 2%. Impinj traded down 15% following the results while Monolithic Power Systems was also down 7.5%.
Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 5.6% on average over the last month. Magnachip is down 1.6% during the same time and is heading into earnings with an average analyst price target of $5.25 (compared to the current share price of $3.15).
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