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

Magnachip Semiconductor (NYSE:MX) released its quarterly earnings data on Wednesday. The semiconductor company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.32) by $0.24, FiscalAI reports. The business had revenue of $40.57 million for the quarter, compared to analyst estimates of $40.50 million. Magnachip Semiconductor had a negative return on equity of 4.48% and a negative net margin of 16.62%.

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

• Q4 revenue was $40.6 million with a 9.3% gross margin$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 Trading Down 2.8%

Shares of MX stock traded down $0.08 during mid-day trading on Friday, hitting $2.79. The company’s stock had a trading volume of 46,913 shares, compared to its average volume of 354,987. The company has a market cap of $100.38 million, a PE ratio of -3.44 and a beta of 1.02. The company’s fifty day simple moving average is $2.86 and its 200-day simple moving average is $2.88. Magnachip Semiconductor has a 52 week low of $2.18 and a 52 week high of $4.57. The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.50 and a current ratio of 4.32.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Magnachip Semiconductor

A number of hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP raised its stake in shares of Magnachip Semiconductor by 47.2% in the fourth 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 bought a new position in Magnachip Semiconductor during the 4th quarter valued at $551,000. Ameriprise Financial Inc. grew its stake 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 worth $4,485,000 after acquiring an additional 208,417 shares in the last quarter. Orion Porfolio Solutions LLC raised its holdings in shares of Magnachip Semiconductor by 94.6% in the second 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 raised its holdings in shares of Magnachip Semiconductor by 78.4% in the second quarter. Arrowstreet Capital Limited Partnership now owns 271,381 shares of the semiconductor company’s stock valued at $1,080,000 after purchasing an additional 119,269 shares during the last quarter. Institutional investors and hedge funds own 74.26% of the company’s stock.

About Magnachip Semiconductor

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.