MagnaChip (MX) Tops Q4 EPS by 24c

February 19, 2020 4:44 PM

MagnaChip (NYSE: MX) reported Q4 EPS of $0.38, $0.24 better than the analyst estimate of $0.14. Revenue for the quarter came in at $200 million versus the consensus estimate of $199 million.

CEO YJ Kim comments on Coronavirus and Q1 2020 financial guidance, "On behalf of MagnaChip, let me extend our deepest thoughts and prayers to those coping with the impact of the COVID-19 coronavirus in China and elsewhere. From a business perspective, we are still assessing the potential impact since the coronavirus situation is still very dynamic. MagnaChip historically has experienced typical seasonal softness and a decline in revenue in its first quarter as compared to the prior fourth quarter, but we entered 2020 with a more optimistic view. Prior to the coronavirus outbreak, our preliminary internal forecast had anticipated Q1 2020 revenue would be slighter higher than the $200 million in revenue we reported in Q4 2019.

MagnaChip\'s manufacturing supply chain resides largely outside China so there is negligible impact on our results. However, based on our preliminary assessments, public health measures taken in China to protect the population likely will affect customer demand in Q1. As a result, we\'ve lowered our internal expectation and widened the typical guidance range we normally would provide for Q1 2020 to help account for lingering uncertainty around this public health crisis. While actual results may vary based upon events that are still unfolding, MagnaChip currently anticipates, based on best available current estimates, in Q1 2020:

GUIDANCE:

MagnaChip sees Q1 2020 revenue of $180-195 million, versus the consensus of $179.1 million.

For earnings history and earnings-related data on MagnaChip (MX) click here.

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