Semiconductor manufacturer Magnachip Semiconductor (NYSE: MX) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Magnachip met analysts’ revenue expectations last quarter, reporting revenues of $40.57 million, down 20.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a significant improvement in its inventory levels.
Is Magnachip a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Magnachip’s revenue to grow 2.9% year on year, in line with the 3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Magnachip has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Magnachip’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 18.6%, beating analysts’ expectations by 6.6%, and Micron reported revenues up 196%, topping estimates by 20.1%. Texas Instruments traded up 19.6% following the results while Micron was down 3.8%.
Read our full analysis of Texas Instruments’s results here and Micron’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 50.4% on average over the last month. Magnachip is up 97.1% during the same time and is heading into earnings with an average analyst price target of $4 (compared to the current share price of $5.32).
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