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Semiconductor manufacturer Magnachip Semiconductor (NYSE: MX) will be reporting results tomorrow morning. Here’s what to look for.
Magnachip beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $66.46 million, up 8.5% year on year. It was a satisfactory quarter for the company, with a significant improvement in its inventory levels but a miss of analysts’ EPS estimates.
This quarter, analysts are expecting Magnachip’s revenue to grow 21.2% year on year to $61.57 million, a reversal from the 16.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Magnachip has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Magnachip’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Himax delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 7.3%, and Skyworks Solutions reported a revenue decline of 11.1%, in line with consensus estimates. Himax traded up 19.2% following the results while Skyworks Solutions was down 24.8%.
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