Why Magnachip (MX) Stock Is Falling Today

Radek Strnad /
2023/05/04 2:22 pm EDT

What Happened:

Shares of semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) fell 5.07% in the morning session after the company reported first-quarter results that missed analysts' revenue, gross margin, operating income, and earnings per share (EPS) expectations. On the positive side, free cash flow exceeded expectations and inventory levels improved. Revenue guidance for the next quarter missed Consensus estimates, and the topline growth remains weak. The result suggests the underlying issues with the company continue to persist. Management added that "the Q1 results continued to be affected by last year's OLED wafer shortages that impacted second half design-wins and the ongoing smartphone inventory correction in the Display business and weak consumer demand in the Power business."

What is the market telling us:

Magnachip's shares are not very volatile than the market average and over the last year have had only 20 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Magnachip is down 9.01% since the beginning of the year, and at $8.56 per share it is trading 57.4% below its 52-week high of $20.12 from May 2022. Investors who bought $1,000 worth of Magnachip's shares 5 years ago would now be looking at an investment worth $800.16.

Is now the time to buy Magnachip? Access our full analysis of the earnings results here, it's free.