Wednesday, July 31, 2013 12:58:00 PM
By Ben Levisohn
There’s nothing like a resounding earnings beat to convince bearish investors that the future looks bright. And that’s exactly what MagnaChip (MX) did.
Reuters
The South Korean chip maker reported earnings of 71 cents a share, above forecasts of 60 cents, while revenue ticked up 6.2% from a year ago to $$215.3 million, above estimates for $214.96 million. MagnaChip also approved a $100 million stock-buyback program.
The news was good enough for Susquehanna to upgrade the stock to Positive from Neutral, while Needham’s Rajvindra Gill increased his earnings estimate for the stock. Gill explains why he’s a fan of the stock:
MX’s diverse, hybrid business model continues to show its true value in our view as MX is able to offset a slowdown at two of its top handset customers through the sheer diversity of its customer base and product breadth. With the announcement of $100MM share buyback, lower OPEX profile and continued top line growth, we believe MX is on track to earn well over $3 next year, making the stock look undervalued at current levels…Our $28 PT is based on a conservative forward P/E 8.8x on 2014 earnings.
Shares of MagnaChip have gained 15% to $19.97 today–more than erasing its 9.5% drop during the past week. The iShares MSCI South Korea ETF (EWY) has fallen 0.8% to $55.64.
"Then there was a woman, a lion of a woman."
Recent MX News
- Magnachip Expands Automotive Power Product Lineup with Four New 40V MXT MV MOSFETs • Business Wire • 09/09/2024 10:55:00 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/12/2024 09:34:03 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2024 08:21:21 PM
- Groupe TMX Limitée présente ses résultats du deuxième trimestre de 2024 • PR Newswire (Canada) • 07/31/2024 09:45:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 08:20:53 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 08:15:32 PM
- Magnachip Reports Results for Second Quarter 2024 • Business Wire • 07/31/2024 08:05:00 PM
- Magnachip Unveils Its First 8th-Generation MXT LV MOSFET Designed with Super-Short Channel FET II • Business Wire • 07/30/2024 10:55:00 AM
- Magnachip Expands Solar Energy Power Product Lineup with the Release of 1200V IGBT in TO-247PLUS Package • Business Wire • 07/29/2024 10:55:00 AM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 07/11/2024 08:20:04 PM
- Magnachip to Announce Second Quarter 2024 Financial Results on July 31, 2024 • Business Wire • 07/10/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:20:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:20:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:20:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:20:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:20:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:20:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:20:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:20:04 PM
- Magnachip Mixed-Signal Unveils Power Management IC and Level Shifter for Display Panels in IT Devices • Business Wire • 06/10/2024 10:55:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 08:20:04 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/10/2024 08:21:35 PM
- Magnachip Reports Results for First Quarter 2024 • Business Wire • 05/02/2024 08:05:00 PM
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