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 3.3% last quarter, reporting revenues of $53.17 million, down 12.8% year on year. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts’ EBITDA 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 grow 4.6% year on year to $64.03 million, a reversal from the 14% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.
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 four 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 delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and ON Semiconductor reported a revenue decline of 19.2%, in line with consensus estimates. Impinj traded down 13.1% following the results.
Read our full analysis of Impinj’s results here and ON Semiconductor’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 up 3.2% during the same time and is heading into earnings with an average analyst price target of $7.50 (compared to the current share price of $4.82).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.