Magnachip Semiconductor (NYSE:MX) Announces Earnings Results, Beats Expectations By $0.24 EPS

by · The Markets Daily

Magnachip Semiconductor (NYSE:MX – Get Free Report) issued its quarterly earnings results on Wednesday. The semiconductor company reported ($0.08) earnings per share for the quarter, topping the consensus estimate of ($0.32) by $0.24, FiscalAI reports. Magnachip Semiconductor had a negative net margin of 18.84% and a negative return on equity of 2.93%.

Here are the key takeaways from Magnachip Semiconductor’s conference call:

  • Q4 revenue was $40.6 million with a 9.3% gross margin), and a one-time $2.7 million sales incentive reduced revenue and cut gross margin by ~560 bps; full-year revenue declined to $178.9 million, reflecting continued top-line pressure.
  • Management has exited the display business, implemented cost reductions and sales reorganization, and materially stepped up R&D—launching 55 new generation products in 2025 and targeting >40 new generation products in 2026 to improve competitiveness and margins over time.
  • Q1 2026 guidance calls for revenue of $44–$48 million and a gross margin of 14%–16% (better sequentially but below prior year), while management expects new-generation products to be only ~10% of revenue by Q4 2026, signaling a gradual recovery.
  • Key near-term headwinds remain: intense pricing pressure (especially in China), lower fab utilization, and a multi-year, resource-intensive plan to develop silicon carbide and module/Power IC businesses that may require partnerships or outside manufacturing.

Magnachip Semiconductor Stock Performance

MX traded down $0.03 during mid-day trading on Wednesday, reaching $2.69. 342,660 shares of the company traded hands, compared to its average volume of 351,612. Magnachip Semiconductor has a 52-week low of $2.18 and a 52-week high of $4.57. The company’s fifty day moving average price is $2.85 and its 200-day moving average price is $2.88. The stock has a market capitalization of $96.79 million, a P/E ratio of -2.61 and a beta of 1.02. The company has a quick ratio of 3.50, a current ratio of 4.32 and a debt-to-equity ratio of 0.15.

Institutional Investors Weigh In On Magnachip Semiconductor

Several large investors have recently added to or reduced their stakes in MX. Marshall Wace LLP grew its position in Magnachip Semiconductor by 47.2% during the 4th quarter. Marshall Wace LLP now owns 1,285,832 shares of the semiconductor company’s stock worth $3,279,000 after purchasing an additional 412,098 shares during the last quarter. FourWorld Capital Management LLC purchased a new position in Magnachip Semiconductor in the fourth quarter valued at $551,000. Ameriprise Financial Inc. lifted its holdings in shares of Magnachip Semiconductor by 17.0% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,432,843 shares of the semiconductor company’s stock valued at $4,485,000 after purchasing an additional 208,417 shares during the last quarter. Orion Porfolio Solutions LLC grew its stake in shares of Magnachip Semiconductor by 94.6% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 321,879 shares of the semiconductor company’s stock valued at $1,281,000 after purchasing an additional 156,507 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Magnachip Semiconductor by 78.4% during the second 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 period. 74.26% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on MX shares. Weiss Ratings restated a “sell (e+)” rating on shares of Magnachip Semiconductor in a research note on Thursday, January 22nd. Wall Street Zen lowered Magnachip Semiconductor from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $5.50.

Get Our Latest Analysis on Magnachip Semiconductor

About Magnachip Semiconductor

(Get Free Report)

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.

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