Magnachip Semiconductor (NYSE:MX – Get Free Report) posted its quarterly earnings data 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 net margin of 17.26% and a negative return on equity of 5.84%. The firm had revenue of $43.98 million during the quarter, compared to the consensus estimate 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 Trading Down 3.4%
MX stock traded down $0.09 during mid-day trading on Wednesday, reaching $2.44. The company’s stock had a trading volume of 750,436 shares, compared to its average volume of 757,972. Magnachip Semiconductor has a 12 month low of $2.18 and a 12 month high of $9.86. The company has a current ratio of 2.43, a quick ratio of 1.93 and a debt-to-equity ratio of 0.07. The business’s 50 day moving average price is $2.98 and its 200 day moving average price is $3.65. The company has a market cap of $92.63 million, a price-to-earnings ratio of -2.90 and a beta of 1.72.
Analysts Set New Price Targets
Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Magnachip Semiconductor in a research report on Thursday, October 29th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce”.
View Our Latest Analysis on Magnachip Semiconductor
Insider Activity
In related news, CEO Chae Lee acquired 80,000 shares of Magnachip Semiconductor stock in a transaction dated Wednesday, September 23rd. The stock was bought at an average price of $3.18 per share, with a total value of $254,400.00. Following the transaction, the chief executive officer directly owned 368,750 shares in the company, valued at $1,172,625. This represents a 27.71% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 10.90% of the company’s stock.
Magnachip Semiconductor Company Profile
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.
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