Magnachip Semiconductor Q2 revenue rises, cuts FY sales forecast

Overview

• Magnachip Q2 2025 revenue rises 8.1% yr/yr

• Gross profit margin at 20.4%, within company's guidance range

Outlook

• Company expects Q3 revenue between $44 mln and $48 mln

• Sees Q3 sales drop at mid-point due to pull-ins in Q2, competitive pricing pressure on older generation products

• Magnachip forecasts Q3 gross margin of 18.5% to 20.5%

• Company anticipates flat 2025 revenue vs previous forecast of mid-to-high single digit growth, due to macro challenges

• Magnachip revises 2025 gross margin to 19% to 20%

Result Drivers

• PAS GROWTH - Revenue from communication applications rose 46.7% yr/yr, accounting for 20% of PAS (Power Analog Solutions) revenue

• COMPUTING APPLICATIONS - Revenue from computing applications increased 45.1% yr/yr, representing 8% of PAS revenue

• PIC DEMAND - Power IC (PIC) business grew 11.1% yr/yr, driven by TV-LED and OLED power ICs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for MagnaChip Semiconductor Corp is $6.00, about 29% above its July 30 closing price of $4.26

Press Release: ID:nBw5wJXNPa