What To Expect From Magnachip’s (MX) Q4 Earnings

Radek Strnad /
2024/01/30 2:00 am EST

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

Last quarter Magnachip reported revenues of $61.25 million, down 14% year on year, missing analyst expectations by 1%. 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 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 14% year on year to $52.47 million, improvement on the 44.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.26 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 Q4 earnings results, giving us a hint of what we can expect. Texas Instruments's revenues decreased 12.7% year on year, missing analyst estimates by 1.4% and KLA Corporation reported revenue decline of 16.7% year on year, exceeding estimates by 1.1%. Texas Instruments traded down 3.7% on the results, KLA Corporation was down 6.6%.

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

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 3.7% over the last month. Magnachip is down 14.9% during the same time, and is heading into the earnings with analyst price target of $11.5, compared to share price of $6.7.

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.

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