What To Expect From Magnachip’s (MX) Q2 Earnings

Anthony Lee /
2023/08/06 7:26 am EDT

Semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Last quarter Magnachip reported revenues of $57 million, down 45.2% year on year, missing analyst expectations by 6.55%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Is Magnachip buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Magnachip's revenue to decline 40.3% year on year to $60.5 million, a further deceleration on the 11% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.

Magnachip Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Magnachip's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ON Semiconductor delivered top-line growth of 0.45% year on year, beating analyst estimates by 3.66%, and Lattice Semiconductor reported revenues up 17.8% year on year, exceeding estimates by 1.47%. ON Semiconductor traded up 5.56% on the results, Lattice Semiconductor was down 1.16%. Read our full analysis of ON Semiconductor's results here and Lattice Semiconductor's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.49% over the last month. Magnachip is down 8.22% during the same time, and is heading into the earnings with analysts' average price target of $14, compared to share price of $9.27.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.