NYSE$MX

MagnaChip Semiconductor Corp. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

MagnaChip reported strong Q2 2020 results, exceeding expectations despite COVID-19 market disruptions and making significant progress with the pending sale of its Foundry Services Group business and Fab 4.

MagnaChip Semiconductor Corporation announced financial results for the second quarter of 2020, with GAAP earnings per share of $0.34 and non-GAAP diluted earnings per share of $0.13. The company's cash balance reached $192.8 million, the highest since its IPO in March 2011, and net operating cash flow was $36.0 million, marking the fifth consecutive quarter of positive operating cash flow.

  • GAAP earnings per share of $0.34 from continuing operations.
  • Non-GAAP diluted earnings per share from continuing operations of $0.13.
  • Cash of $192.8 million, the highest since IPO in March 2011.
  • Non-GAAP combined revenue of $204.7 million from total operations exceeded the high-end of the guidance range.

Headline financials

Total Revenue

$119M

Previous: $205M-42.1%
EPS (adj)

$0.13

Previous: $0.08+62.5%
Gross Profit Margin

27.0%

No prior period
Capital Expenditures

-$8.84M

Previous: -$15M+41.1%
Free Cash Flow

$20.3M

Previous: -$24.5M+182.9%
Net Income

$29.2M

Previous: -$9.52M+406.4%
Operating Income

$8.62M

Previous: $6.75M+27.8%
Gross Profit

$32.1M

Previous: $43.8M-26.7%
Cash & Equivalents

$193M

Previous: $124M+55.8%
Total Assets

$615M

Previous: $588M+4.6%
Stock-Based Comp

$1.64M

Previous: $772K+112.8%

Revenue & EPS history

MagnaChip · Revenue · Quarterly

$119M

Q2 2020-42.1%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

MagnaChip · $9.63M total across 1 segment · Q3 2023

  • Transitional Fab 3 Foundry
    $9.63M+14.2%

Forward guidance

MagnaChip anticipates revenue from continuing operations to be in the range of $118 million to $124 million and gross profit margin from continuing operations to be in the range of 25% to 27% for Q3 2020.

Tailwinds

  • Revenue from the continuing operations to be in the range of $118 million to $124 million, including $9.5 million to $10 million of the Transitional Fab 3 Foundry Services at cost
  • Company nearly fully operational in Fab 3 facility as of the date of this earnings report.
  • Expect to close the pending sale of the Foundry business and Fab 4 in Q3.
  • Evaluating potential insurance and other claims for the loss and damages due to the power outage.
  • Without the estimated power outage impact, gross profit margin from continuing operations would have been in the range of 27% and 29%

Headwinds

  • Fab 3 facility in Gumi, South Korea experienced a temporary power outage for approximately 9 hours and 15 minutes on July 20, 2020.
  • The accident caused damage to work-in-process wafers with an estimated total cost of up to approximately $2.3 million.
  • The COVID-19 global pandemic and escalated trade tension are rapidly evolving situations and reduce forward visibility.
  • Actual results may vary.
  • Related impact to revenue from continuing operations expected to be negligible.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.4%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-1.2%

Avg return

30 days after

51%

32 / 63 earnings

Positive

+21.9%

Q2 2016

Best reaction

-49.8%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+17.4%+5.2%
Q4 2025+7.5%+1.9%+6.7%
Q3 2025-8.4%-27.0%-3.5%
Q1 2025-3.3%+24.0%+18.0%
Q4 2024-5.4%-4.0%-30.7%
Q3 2024-2.0%-15.1%-4.0%
Q2 2024+16.9%+7.3%-4.1%
Q1 2024+3.7%+2.2%+2.4%
Q4 2023-12.6%-15.6%-14.4%
Q3 2023+1.2%-3.6%-9.7%
Q2 2023-1.0%-9.8%-11.5%
Q1 2023+0.1%+1.4%+19.1%
Q4 2022-5.2%-6.2%-14.7%
Q3 2022-6.9%-9.1%-4.5%
Q2 2022-15.7%-7.3%-21.3%
Q1 2022-2.4%-5.3%+6.6%
Q4 2021-0.9%+0.0%-6.9%
Q3 2021+3.6%+5.5%+4.8%
Q2 2021-7.2%-2.0%-13.5%
Q1 2021-0.6%-5.9%-5.0%
Q4 2020-0.4%-3.5%+13.1%
Q3 2020+5.1%+8.4%+9.4%
Q2 2020+4.1%+7.7%+12.0%
Q1 2020+6.5%-0.3%+14.1%
Q4 2019+5.5%-5.4%-45.3%
Q3 2019+2.9%+9.4%-2.1%
Q2 2019+2.0%+5.2%-8.0%
Q1 2019+9.0%+9.1%-10.8%
Q4 2018-3.8%+22.0%+7.2%
Q3 2018+0.5%+2.9%-14.2%
Q2 2018+4.0%+9.4%+0.4%
Q1 2018+16.6%+14.4%+20.3%
Q4 2017-10.9%-18.6%-7.7%
Q3 2017+9.7%+7.2%+18.4%
Q2 2017+16.4%+12.6%+11.7%
Q1 2017+14.9%+15.5%+4.8%
Q4 2016-11.8%-8.9%-12.4%
Q3 2016-26.6%-29.6%-17.8%
Q2 2016+21.9%+23.8%+46.1%
Q1 2016+4.7%
Q4 2015+12.6%
Q3 2015-22.1%
Q2 2015-2.0%
Q1 2015+12.2%
Q4 2014+12.2%
Q3 2014-49.8%
Q1 2014-49.8%
Q2 2014-49.8%
Q4 2013-9.6%
Q3 2013-12.1%
Q2 2013+15.3%
Q1 2013+0.8%
Q4 2012+0.3%
Q3 2012+14.0%
Q2 2012+17.5%
Q1 2011-7.1%
Q4 2011-7.1%
Q1 2012-1.1%
Q3 2011+1.2%
Q3 2010+1.2%
Q2 2011-4.5%
Q2 2010-4.5%
Q4 2010-4.5%
Q1 2010

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