Magnachip (MX) Q1 Earnings Report Preview: What To Look For

Adam Hejl /
2024/05/01 3:03 am EDT

Semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) will be reporting results tomorrow after the bell. Here's what you need to know.

Magnachip missed analysts' revenue expectations by 3.1% last quarter, reporting revenues of $50.82 million, down 16.7% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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 14.5% year on year to $48.73 million, improving from the 45.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.

Magnachip Total Revenue

The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Texas Instruments's revenues decreased 16.4% year on year, beating analysts' expectations by 1.4%, and Impinj reported a revenue decline of 10.6%, topping estimates by 4.4%. Texas Instruments traded up 5.7% following the results while Impinj was also up 28.8%.

Read our full analysis of Texas Instruments's results here and Impinj's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 2.4% on average over the last month. Magnachip is down 8.6% during the same time and is heading into earnings with an average analyst price target of $10 (compared to the current share price of $5.02).

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