Magnachip Semiconductor (NYSE:MX) Issues Earnings Results

Magnachip Semiconductor (NYSE:MX) released its quarterly earnings results on Wednesday. The semiconductor company reported ($0.29) EPS for the quarter, missing analysts’ consensus estimates of ($0.20) by ($0.09), FiscalAI reports. Magnachip Semiconductor had a negative return on equity of 11.30% and a negative net margin of 17.15%. The firm had revenue of $43.98 million for the quarter, compared to analyst estimates of $47.50 million.

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

• Q3 revenue was $44 million, down 4.3% year over year, while gross margin fell to 14% from 18.6% a year earlier and missed guidance. Management attributed the margin shortfall primarily to the Korean won’s sharp appreciation against the U.S. dollar.
• Q4 revenue is expected to be $41 million–$45 million, with gross margin guided to just 10%–12%. Management cited seasonal softness, lower fab utilization during a Gumi plant shutdown, and currency effects, though it expects Q4 to be the gross-margin low point.
• Magnachip plans to accelerate its shift toward differentiated power solutions, targeting approximately 85 new product announcements in 2026, up from 55 last year. Management expects initial sampling of near-term products within 12 months.
• The company and Navitas have begun joint development of high-voltage products, with sampling expected in the second half of 2027; Navitas also invested $5 million in Magnachip. Management says the partnership could expand the company’s reach in markets including AI data centers, energy infrastructure, and industrial applications.

Magnachip Semiconductor Stock Up 14.5%

Shares of MX stock traded up $0.30 during trading on Friday, reaching $2.35. The company’s stock had a trading volume of 1,814,080 shares, compared to its average volume of 1,306,944. Magnachip Semiconductor has a 1-year low of $1.92 and a 1-year high of $9.86. The stock’s 50-day moving average price is $2.95 and its 200 day moving average price is $3.65. The company has a market capitalization of $89.32 million, a price-to-earnings ratio of -2.86 and a beta of 1.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.43 and a quick ratio of 1.93.

Insider Transactions at Magnachip Semiconductor

In other Magnachip Semiconductor news, CEO Chae Lee bought 20,000 shares of Magnachip Semiconductor stock in a transaction on Thursday, September 24th. The shares were bought at an average cost of $3.22 per share, for a total transaction of $64,400.00. Following the acquisition, the chief executive officer directly owned 388,750 shares in the company, valued at $1,251,775. This represents a 5.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 10.90% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Magnachip Semiconductor in a report on Thursday, October 29th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce”.

About Magnachip Semiconductor

Magnachip Semiconductor Corporation (NYSE: MX) is a semiconductor company that designs and supplies analog and mixed-signal products. Its portfolio is focused primarily on power semiconductors and display solutions used in consumer electronics, communications equipment, automotive applications, industrial systems and other electronic devices.

The company’s power products include metal-oxide-semiconductor field-effect transistors (MOSFETs), insulated-gate bipolar transistors (IGBTs), power integrated circuits and other discrete semiconductor devices designed to manage power conversion, distribution and efficiency.