Magnachip Semiconductor (NYSE:MX) Releases Earnings Results, Beats Expectations By $0.09 EPS

Magnachip Semiconductor (NYSE:MX) announced its quarterly earnings results on Wednesday. The semiconductor company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.22) by $0.09, FiscalAI reports. Magnachip Semiconductor had a negative net margin of 14.14% and a negative return on equity of 4.68%. The company had revenue of $44.70 million for the quarter, compared to analysts’ expectations of $46.50 million.

Here are the key takeaways from Magnachip Semiconductor’s conference call:

• Q2 revenue declined 6.1% year over year to $44.7 million, pressured by weaker demand and pricing competition for legacy products. Adjusted operating loss widened to $7.0 million, while adjusted EBITDA declined to negative $4.2 million.
• Magnachip guided for Q3 revenue of $41.5 million to $45.5 million, down sequentially and approximately 5.2% year over year at the midpoint, with gross margin expected to fall to 17%–19%. Packaging constraints, lower customer volumes, legacy-product pricing pressure, and unfavorable mix are expected to weigh on results.
• The company is transitioning toward a differentiated, pure-play power semiconductor portfolio, targeting 55 new-generation product launches in 2026. New-generation products are expected to represent at least 10% of full-year 2026 revenue, versus approximately 2% in 2025.
• Magnachip announced a partnership with Navitas Semiconductor to license silicon carbide technologies spanning 1,200V to above 3,300V applications and leverage Navitas’ supply chain. The agreement provides a capital-efficient path into high-voltage markets including grid infrastructure, industrial electrification, automotive, and renewable energy.
• Cash fell to $83.9 million from $94.6 million in the prior quarter due primarily to operating cash outflows and capital expenditures. Management also expects lower fab utilization from a planned substation upgrade to create a one-quarter lag effect, with Q4 gross margin likely declining slightly from Q3.

Magnachip Semiconductor Stock Down 7.0%

MX stock traded down $0.23 on Wednesday, reaching $3.00. 1,429,817 shares of the company traded hands, compared to its average volume of 1,054,696. The firm has a fifty day simple moving average of $5.18 and a 200-day simple moving average of $3.89. The company has a market cap of $109.50 million, a P/E ratio of -4.29 and a beta of 1.59. Magnachip Semiconductor has a one year low of $2.18 and a one year high of $9.86. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.37 and a quick ratio of 1.91.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Weiss Ratings raised Magnachip Semiconductor from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday, May 4th. Zacks Research downgraded Magnachip Semiconductor from a “strong-buy” rating to a “hold” rating in a report on Monday, May 4th. Finally, Wall Street Zen upgraded shares of Magnachip Semiconductor from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Magnachip Semiconductor presently has a consensus rating of “Hold” and a consensus price target of $5.50.

Institutional Investors Weigh In On Magnachip Semiconductor

A number of institutional investors have recently modified their holdings of the stock. American Century Companies Inc. raised its position in shares of Magnachip Semiconductor by 4.7% in the 2nd quarter. American Century Companies Inc. now owns 76,312 shares of the semiconductor company’s stock worth $304,000 after purchasing an additional 3,451 shares during the last quarter. BNP Paribas Financial Markets raised its holdings in Magnachip Semiconductor by 1.9% in the third quarter. BNP Paribas Financial Markets now owns 315,732 shares of the semiconductor company’s stock worth $988,000 after buying an additional 5,764 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Magnachip Semiconductor by 0.6% in the third quarter. Vanguard Group Inc. now owns 1,030,024 shares of the semiconductor company’s stock worth $3,224,000 after buying an additional 6,519 shares in the last quarter. Engineers Gate Manager LP lifted its stake in shares of Magnachip Semiconductor by 15.4% in the second quarter. Engineers Gate Manager LP now owns 59,648 shares of the semiconductor company’s stock worth $237,000 after buying an additional 7,941 shares in the last quarter. Finally, Quadrature Capital Ltd grew its holdings in shares of Magnachip Semiconductor by 57.0% during the fourth quarter. Quadrature Capital Ltd now owns 24,420 shares of the semiconductor company’s stock valued at $62,000 after buying an additional 8,863 shares during the last quarter. 74.26% of the stock is owned by hedge funds and other institutional investors.

Magnachip Semiconductor Company Profile

Magnachip Semiconductor Inc is a fabless semiconductor company specializing in high-performance analog and mixed-signal solutions for the display, power management and lighting markets. Its core product portfolio includes display driver ICs for LCD and OLED panels, high-voltage MOSFETs, DC-DC converters, LED driver ICs and power management devices used in consumer electronics, mobile devices, industrial equipment and automotive applications.

Founded in 2004 as a spin-off from MagnaChip, Magnachip is incorporated in the United States with design and sales offices strategically located across North America, Europe and Asia.