Magnachip Semiconductor (NYSE:MX) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Magnachip Semiconductor (NYSE:MX) announced its earnings results on Wednesday. The semiconductor company reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.22) by $0.09, FiscalAI reports. Magnachip Semiconductor had a negative return on equity of 4.68% and a negative net margin of 14.14%.The business had revenue of $44.70 million during 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 Trading Up 5.5%

MX stock traded up $0.17 during mid-day trading on Thursday, reaching $3.17. 1,338,398 shares of the stock traded hands, compared to its average volume of 1,462,155. The company has a current ratio of 2.37, a quick ratio of 1.91 and a debt-to-equity ratio of 0.07. Magnachip Semiconductor has a 52-week low of $2.18 and a 52-week high of $9.86. The company has a market cap of $115.70 million, a P/E ratio of -4.52 and a beta of 1.59. The stock’s fifty day moving average is $5.18 and its 200-day moving average is $3.89.

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On Magnachip Semiconductor

Several hedge funds have recently made changes to their positions in the company. Engineers Gate Manager LP lifted its holdings 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 valued at $237,000 after purchasing an additional 7,941 shares in the last quarter. Jump Financial LLC grew its holdings in shares of Magnachip Semiconductor by 58.6% during the fourth quarter. Jump Financial LLC now owns 100,451 shares of the semiconductor company’s stock valued at $256,000 after buying an additional 37,119 shares in the last quarter. Kennedy Capital Management LLC raised its position in Magnachip Semiconductor by 63.4% during the third quarter. Kennedy Capital Management LLC now owns 105,551 shares of the semiconductor company’s stock valued at $330,000 after buying an additional 40,959 shares during the period. Millennium Management LLC raised its position in Magnachip Semiconductor by 13.6% during the fourth quarter. Millennium Management LLC now owns 288,837 shares of the semiconductor company’s stock valued at $737,000 after buying an additional 34,582 shares during the period. Finally, BNP Paribas Financial Markets lifted its stake in Magnachip Semiconductor by 1.9% in the 3rd quarter. BNP Paribas Financial Markets now owns 315,732 shares of the semiconductor company’s stock worth $988,000 after acquiring an additional 5,764 shares in the last quarter. Hedge funds and other institutional investors own 74.26% of the company’s stock.

About Magnachip Semiconductor

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.