Magnachip Earnings: What To Look For From MX

Semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) will be reporting results tomorrow after market hours. Here’s what to look for.

Magnachip met analysts’ revenue expectations last quarter, reporting revenues of $45.95 million, down 17.1% 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, the market is expecting Magnachip’s revenue to decline 35.8% year on year, a reversal from the 24% increase it recorded in the same quarter last year.

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 multiple times over the last two years.

Looking at Magnachip’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Skyworks Solutions’s revenues decreased 3.1% year on year, beating analysts’ expectations by 3.4%, and Analog Devices reported revenues up 30.4%, topping estimates by 1.4%. Skyworks Solutions traded up 5.5% following the results while Analog Devices was also up 2.3%.

Read our full analysis of Skyworks Solutions’s results here and Analog Devices’s results here.

Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Magnachip is down 5.2% during the same time and is heading into earnings with an average analyst price target of $4 (compared to the current share price of $2.75).

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