Magnachip (MX) Q3 Earnings Report Preview: What To Look For
Semiconductor manufacturer Magnachip Semiconductor (NYSE:MX) will be reporting results tomorrow after market hours. Here's what to expect.
Last quarter Magnachip reported revenues of $61 million, down 39.8% year on year, in line with analyst expectations. It was a weaker 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 13.2% year on year to $61.8 million, improvement on the 43.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 per share.
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 four times over the last two years.
Looking at Magnachip's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Impinj's revenues decreased 4.78% year on year, beating analyst estimates by 0.46% and Texas Instruments reported revenue decline of 13.5% year on year, missing analyst estimates by 1.22%. Impinj traded up 20.7% on the results, Texas Instruments was down 4.3%.
Read our full analysis of Impinj's results here and Texas Instruments's results here.
There has been a stampede out of high valuation technology stocks, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 8.81% over the last month. Magnachip is down 11.2% during the same time, and is heading into the earnings with analyst price target of $14, compared to share price of $7.39.
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The author has no position in any of the stocks mentioned.
