Magnachip Semiconductor Earnings: Here’s Why Shares are Up Now

Magnachip Semiconductor LLC (NYSE:MX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.25%.

Magnachip Semiconductor LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 47.92% to $0.71 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 6.25% to $215.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Magnachip Semiconductor LLC reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.6. It beat the average revenue estimate of $214.96 million.

Quoting Management: “We delivered solid results in the second quarter. Revenue of $215.3 million dollars was up 4.9% sequentially and up 6.2% year-over-year. Gross margin of 33.0% was up 100 basis points compared to last quarter and up 200 basis points compared to Q2 of last year,” said Sang Park, MagnaChip Chairman and CEO. “We’re excited that our effort to focus on fast growing markets with our expanding list of innovative partners has enabled us to deliver ten consecutive quarters of meeting or exceeding our financial guidance, in spite of the recent soft demand from high-end smartphone makers.”

Key Stats (on next page)…

Revenue increased 4.87% from $205.3 million in the previous quarter. EPS increased 33.96% from $0.53 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.74 to a profit $0.73. For the current year, the average estimate is a profit of $2.49, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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