The 10-second takeaway
For the quarter ended June 30 (Q2), MagnaChip Semiconductor met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share was unchanged.
Gross margins grew, operating margins expanded, net margins were steady.
MagnaChip Semiconductor notched revenue of $215.3 million. The seven analysts polled by S&P Capital IQ expected revenue of $214.9 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $202.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.71. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. Non-GAAP EPS of $0.71 for Q2 were 48% higher than the prior-year quarter's $0.48 per share. GAAP EPS of $0.12 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 33.0%, 200 basis points better than the prior-year quarter. Operating margin was 14.0%, 260 basis points better than the prior-year quarter. Net margin was 2.1%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $220.8 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $853.7 million. The average EPS estimate is $2.47.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 71 members out of 74 rating the stock outperform, and three members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give MagnaChip Semiconductor a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MagnaChip Semiconductor is outperform, with an average price target of $22.71.
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