NYSE$MX

MagnaChip Semiconductor Corp. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

MagnaChip's revenue decreased due to wafer shortages and inventory corrections, but the company achieved milestones for recovery in 2023.

MagnaChip reported Q4 2022 revenue of $61.0 million, near the high-end of their guidance range, but a 44.7% decrease YoY due to wafer shortages and inventory correction. GAAP diluted earnings per share was $0.07, while non-GAAP diluted loss per share was $0.36.

  • Q4 revenue was $61.0 million, near the high-end of guidance.
  • Gross profit margin for Q4 was 26.4%.
  • Expanded OLED business into international markets by winning a new tier one panel customer outside of Korea.
  • Power Solutions business won a record 209 design-in/wins, more than double compared to previous years.

Headline financials

Total Revenue

$61M

Previous: $110M-44.7%
EPS (adj)

-$0.36

Previous: $0.31-216.1%
Capital Expenditures

$11.6M

Previous: $18.8M-38.5%
Free Cash Flow

-$56.7M

Previous: $38.9M-245.7%
Net Income

$2.97K

Previous: $53.6M-100.0%
Operating Income

-$10.1K

Previous: $63.9M-100.0%
Gross Profit

$16.1K

Previous: $38.6M-100.0%
Cash & Equivalents

$225M

Previous: $280M-19.3%
Total Assets

$517M

Previous: $584M-11.5%
Stock-Based Comp

$1.55M

Previous: $1.65M-5.9%

Revenue & EPS history

MagnaChip · Revenue · Quarterly

$61M

Q4 2022-44.7%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

MagnaChip · $7.16K total across 1 segment · Q4 2022

  • Transitional Fab 3 Foundry
    $7.16K-99.9%

Forward guidance

The company expects the first half of 2023 to be impacted by inventory corrections and broader macro weakness. Q1'23 revenue is expected to be in the range of $55 million to $59 million, including about $5 million of Transitional Fab 3 Foundry Services. Q1'23 gross profit margin is expected to be in the range of 21% to 23%.

Tailwinds

  • Reopening of China should eventually lead to an improvement in their economy and consumer demand.
  • Recovery in Display revenue in the second half of 2023 as we ramp shipments of our four design-in projects with our two leading panel customers.
  • Anticipate on maintaining momentum of design wins and premium tier product mix for Power Solutions.
  • As channel inventories are consumed and the broader economy recovers, expect to see a rebound in Power revenue.

Headwinds

  • Near-term outlook is being challenged by previous OLED wafer allocation constraints that impacted 2nd half 2022 design-in projects.
  • Ongoing inventory correction in smartphones and other consumer end markets driven by weakening consumer demand.
  • Q1 is typically the Company’s seasonally slowest quarter following holiday shipments and is impacted by slower activity around the Chinese New Year.
  • In response to the industry-wide slowdown and inventory correction, the Company has reduced production at its Fab 3.
  • Gross profit margin will be further impacted by lower utilization as well as higher manufacturing input costs such as electricity and wages.

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 Q4 2022

Historical avgQ4 2022

-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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