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Semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Magnachip beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $63.04 million, up 24% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Magnachip a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Magnachip’s revenue to decline 9.3% year on year to $44.5 million, improving from the 13.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 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 three times over the last two years.
Looking at Magnachip’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Himax delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 2.4%, and onsemi reported a revenue decline of 22.4%, topping estimates by 3.1%. Himax traded up 1.9% following the results while onsemi was down 8.2%.
Read our full analysis of Himax’s results here and onsemi’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 14.4% on average over the last month. Magnachip is up 14% during the same time and is heading into earnings with an average analyst price target of $6 (compared to the current share price of $3.25).
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