Magnachip Semiconductor (NYSE:MX) Posts Quarterly Earnings Results

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

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 Down 7.0%

Magnachip Semiconductor stock traded down $0.23 during trading hours on Wednesday, reaching $3.00. The company had a trading volume of 1,429,817 shares, compared to its average volume of 1,054,696. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.37 and a quick ratio of 1.91. Magnachip Semiconductor has a 12-month low of $2.18 and a 12-month high of $9.86. The company has a 50-day moving average price of $5.22 and a 200 day moving average price of $3.89. The firm has a market cap of $109.50 million, a price-to-earnings ratio of -4.29 and a beta of 1.59.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Zacks Research lowered shares of Magnachip Semiconductor from a “strong-buy” rating to a “hold” rating in a report on Monday, May 4th. 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. Finally, Wall Street Zen upgraded shares of Magnachip Semiconductor from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. 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. Based on data from MarketBeat.com, Magnachip Semiconductor has an average rating of “Hold” and a consensus price target of $5.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Cubist Systematic Strategies LLC raised its holdings in Magnachip Semiconductor by 22.9% during the 1st quarter. Cubist Systematic Strategies LLC now owns 60,638 shares of the semiconductor company’s stock valued at $208,000 after buying an additional 11,298 shares during the last quarter. Jane Street Group LLC purchased a new stake in Magnachip Semiconductor during the 1st quarter valued at $115,000. American Century Companies Inc. grew its holdings in 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 acquiring an additional 3,451 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Magnachip Semiconductor by 78.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 271,381 shares of the semiconductor company’s stock worth $1,080,000 after acquiring an additional 119,269 shares during the last quarter. Finally, Marshall Wace LLP grew its holdings in Magnachip Semiconductor by 70.3% in the 2nd quarter. Marshall Wace LLP now owns 699,525 shares of the semiconductor company’s stock worth $2,784,000 after acquiring an additional 288,664 shares during the last quarter. Institutional investors own 74.26% of the company’s stock.

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.