MagnaChip Semiconductor Misses Earnings and Revenue Estimates by $0.04 and $4M, Respectively
May 5, 2023
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MAGNACHIP ($NYSE:MX): MagnaChip Semiconductor has disappointed investors with their latest earnings and revenue estimates. The company reported Non-GAAP earnings per share of -$0.24, which was $0.04 below the estimated figure, and their revenue of $57M fell short of expectations by $4M. MagnaChip Semiconductor is a leading designer and manufacturer of semiconductor products for consumer and industrial markets. The company’s products are used in a variety of applications, including consumer electronics, mobile communications, wireless infrastructure, automotive, and computing.
They primarily serve customers in the Americas, China, Europe, and the Asia-Pacific region. Given the missed estimates, investors are likely to be disappointed with the company’s performance. It remains to be seen whether MagnaChip Semiconductor can make up for the shortfall and meet expectations in the next quarter.
Earnings
MAGNACHIP SEMICONDUCTOR‘s earning report for FY2022 Q4 as of December 31 2022 revealed that their total revenue was $60.99M, and net income was $2.97M. This is a decrease of 44.7% in total revenue and 94.5% in net income, compared to the same period last year. Over the last 3 years, MAGNACHIP SEMICONDUCTOR’s total revenue has declined from $142.94M to $60.99M. These results missed expectations by $0.04 and $4M respectively.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Magnachip Semiconductor. More…
| Total Revenues | Net Income | Net Margin |
| 337.66 | -8.04 | -1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Magnachip Semiconductor. More…
| Operations | Investing | Financing |
| 5.17 | -24.93 | -12.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Magnachip Semiconductor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 516.64 | 88.49 | 9.77 |
Key Ratios Snapshot
Some of the financial key ratios for Magnachip Semiconductor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -24.7% | 1.7% | -0.5% |
| FCF Margin | ROE | ROA |
| -5.5% | -0.3% | -0.2% |
Stock Price
This was further reflected in the stock market where their stock opened at $8.6 and only slightly went up to $8.7 by the end of the day, a minor 0.5% increase from the previous closing price of $8.6. The disappointing earnings report was a surprise to investors who had expected a much better performance given the company’s recent success in the semiconductor industry. While the stock saw a slight increase, this could be attributed to investor sentiment rather than any significant progress in the company’s financials. Live Quote…
Analysis
GoodWhale conducted an analysis of MAGNACHIP SEMICONDUCTOR‘s wellbeing, and according to our Star Chart, the company is strong in terms of assets, medium in profitability, and weak in dividend and growth. After assessing the company’s assets and liabilities, we concluded that it is a type of company we classify as an ‘elephant’, a large, financially secure entity. Given MAGNACHIP SEMICONDUCTOR’s strong asset base, large investors may be interested in investing in this company. Furthermore, with its high health score of 8/10 with regard to its cashflows and debt, MAGNACHIP SEMICONDUCTOR is capable of safely riding out any crisis without the risk of bankruptcy. This gives additional reassurance to potential investors looking to invest in the company. More…
Peers
MagnaChip Semiconductor Corp is in the business of designing, manufacturing, and marketing analog and mixed-signal semiconductor products. The company’s competitors are Myson Century Inc, Himax Technologies Inc, and Silicon Motion Technology Corp.
– Myson Century Inc ($TPEX:5314)
MySON Century Inc is a small-cap company with a market cap of 246M as of 2022. The company has a negative ROE of -10.5%. MySON Century Inc is involved in the manufacturing of electric motors and generators. The company’s products are used in a variety of industries, including automotive, aerospace, and industrial.
– Himax Technologies Inc ($NASDAQ:HIMX)
Himax Technologies Inc is a fabless semiconductor company that designs, develops, and markets drivers and other chips for flat panel displays, consumer electronics, and other applications. The company’s market cap is $965.61M and its ROE is 48.79%. Himax is headquartered in Taiwan and has offices in China, the United States, Europe, and Japan.
– Silicon Motion Technology Corp ($NASDAQ:SIMO)
The company’s market cap is 1.92B as of 2022. The company has a ROE of 34.09%. The company is a leading developer and manufacturer of NAND flash controllers for the solid state storage industry. The company’s products are used in a variety of applications, including digital cameras, digital video camcorders, MP3 music players, USB flash drives, solid state drives, and other consumer electronics devices.
Summary
Revenue also came in short at $57M, missing expectations of $61M by $4M. This poor performance highlights the continued uncertainty in the markets and the semiconductor industry which has been affected by the pandemic. As a result, investors should assess their risk appetite before making any decision to invest in Magnachip Semiconductor. Additionally, investors should look for other factors such as company management and industry trends before making any investment decision.
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