Stock News Buzz: MagnaChip Semiconductor Corporation (NYSE: MX)
On Friday, MagnaChip Semiconductor Corporation (NYSE: MX) spotted trading -4.39% off 52-week high price. On the other end, the stock has been noted 108.35% away from the low price over the last 52-weeks. The stock changed -1.48% to recent value of $11.98. The stock transacted 823967 shares during most recent day however it has an average volume of 273.41K shares. The company has 33.77M of outstanding shares and 33.58M shares were floated in the market.
MagnaChip Semiconductor Corporation (MX) recently reported financial results for the third quarter of 2019.
Q3 2019 Summary
- Revenue of $229.7M at high-end of guidance range of $220-230M; Q3 revenue up 11.5% Year-over-Year (YoY); up 12% Quarter-over-Quarter (QoQ)
- Standard Products Group (SPG) revenue of $139.2M, up 14.1% YoY; up 5.5% QoQ
- Foundry Services Group (FSG) revenue of $90.3M, up 7.7% YoY; up 23.6% QoQ
- Total gross profit margin (GPM) of 26.5% exceeded the guidance range of 22-24%; GPM was 27.1% in Q3 2018; 21.4% in Q2 2019
Fourth Quarter 2019 Business Outlook
MagnaChip anticipates:
- Normal seasonal softness in revenue but improvement from the fourth quarter of 2018. Revenue is predictable to be in the range of $181M to $191M, down 19% at the mid-point of the projected range when contrast with revenue of $229.7M in the third quarter of 2019, and up 3.7% year-over-year when contrast to revenue of $179.4M in the fourth quarter of 2018.
- Gross profit margin to be in the range of 24% to 26%, when contrast to 26.5% in the third quarter of 2019 and 24.5% in the fourth quarter of 2018. Gross margin guidance for the fourth quarter reflects the current expectation that fab utilization will show an predictable sequential decline from the third quarter of 2019.
CEO YJ Kim comments on Q3
Revenue of $229.7M was the highest quarterly level achieved since we went public in 2011. Our Display and Power businesses both had record quarterly revenue, and Foundry revenue was at the highest level in five years. Demand continued to be robust for our OLED display drivers, as revenue increased over 34% year-over-year and over 7% sequentially.
We were awarded a record 11 new design wins for OLED display drivers in Asia, including three for mid-range smartphones from a major smartphone maker in Korea. Of the 11 design wins, seven were for display drivers in our 40-nanometer product family and four were for our new and lowest-power 28-nanometer display drivers. Smartphone makers in Asia released total of six high-end and mid-range models using our OLED display drivers. Our Power business showed sequential growth and the Foundry business showed sharp sequential growth, as consumer demand was strong, particularly from the smartphone and computing sections.
Its earnings per share (EPS) expected to touch remained -107.10% for this year while earning per share for the next 5-years is expected to reach at -7.90%. MX has a gross margin of 22.20% and an operating margin of 1.90% while its profit margin remained -3.90% for the last 12 months. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.37% from the mean of 20 days, 12.34% from mean of 50 days SMA and performed 30.95% from mean of 200 days price. Company’s performance for the week was 8.22%, 13.88% for month and YTD performance remained 92.91%.
Willard Shelton – Technology
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