MX Earnings Prediction
The chart below shows how MX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MX sees a +3.04% change in stock price 10 days leading up to the earnings, and a -5.83% change 10 days following the report. On the earnings day itself, the stock moves by +0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
MX Key Earning Data
2024/Q4
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MX Earnings Analysis
MagnaChip Semiconductor Corp Corporation (MX.N) Earnings Conference Call
Positive
Earnings Surprise Report: Magnachip Semiconductor Corporation reported an EPS of $0.07, significantly beating expectations of $-0.22.
Strategic Shift to Profitability: The company announced a new strategy to focus on becoming a pure play power company, which is expected to drive profitability and maximize shareholder value.
Strong Q4 Revenue Growth: Q4 revenue was $63 million, up 24% year-over-year and above the midpoint of guidance, indicating strong performance.
Gross Profit Margin Improvement: Consolidated Q4 gross profit margin was 25.2%, exceeding guidance and showing improvement from previous quarters.
Standard Products Revenue Growth: Revenue from the standard products business was $60.7 million, up 47.5% year-over-year, demonstrating robust growth in this segment.
Power Solutions Growth Target: The Power Solutions business, which includes Power discrete and Power IC, is expected to drive future growth, with a target of achieving a $300 million annual revenue run rate with a 30% gross margin in three years.
Production Equipment Investment: The company plans to invest $65 million to $70 million over the next three years to upgrade production equipment, which is expected to enhance product mix and gross profit margins.
MSS Revenue Surge: Magnachip's MSS revenue was $17.3 million, up 102% year-over-year, indicating strong demand in the automotive sector.
Design Wins and Revenue Growth: The company achieved design wins for new generation power products, which are expected to drive higher revenue per wafer and improve gross margins.
Market Segment Growth: The automotive, industrial, and AI markets are projected to represent over 60% of Magnachip’s future product mix, up from 37% in 2024.
Negative
Operating Loss Analysis: The company reported a Q4 operating loss of $15.7 million, which is an increase from an operating loss of $11 million in Q3 and a loss of $15.9 million in Q4 2023.
Impairment Charge Impact: A one-time non-cash impairment charge of $4.6 million was recorded in Q4 associated with the display business, indicating challenges in that segment.
Net Loss Increase: The net loss for Q4 was $16.3 million, which is a significant increase compared to a net loss of $9.6 million in Q3 and $6 million in Q4 last year.
Revenue Fluctuation Analysis: Despite a year-over-year revenue increase of 24%, there was a sequential decline of 5.1% in Q4 revenue, indicating potential instability in sales performance.
Gross Profit Margin Decline: The company anticipates a decline in consolidated gross profit margin to a range of 18.5% to 20.5% for Q1 2025, down from 23.2% in Q4 2024, reflecting seasonal impacts and the wind down of transitional foundry services.
Discontinued Operations Strategy: The display business is being classified as discontinued operations, which may indicate a strategic retreat from a previously important segment of the business.
EBITDA Breakeven Target: The company is targeting quarterly adjusted EBITDA breakeven by the end of Q4 2025, which suggests current financial struggles and the need for significant improvement in profitability.
MX FAQs
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MX Earning Call Sentiment
Magnachip Semiconductor Corporation (NYSE:MX) Q4 2024 Earnings Call Transcript
MX.N
6.3%Positive
The earnings call summary presents mixed signals. Financial performance shows growth in revenue and margins, but there are concerns about increased net loss and foreign currency impacts. The Q&A highlights strategic challenges, particularly with the display business and Gumi fab upgrades, but also points to potential growth in high-value markets. The stock buyback program offers some shareholder return. Overall, while there are positive elements, uncertainties and strategic challenges temper the sentiment, resulting in a neutral outlook.
