Earnings Preview: MagnaChip Semiconductor

MagnaChip Semiconductor MX announces its next round of earnings this Monday, May 10. Here is Benzinga's everything-that-matters guide for this Monday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering MagnaChip Semiconductor modeled for quarterly EPS of $0.14 on revenue of $121.70 million. MagnaChip Semiconductor reported a profit of $0.03 per share when it published results during the same quarter last year. Sales in that period totaled $120.47 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 366.67% increase in the company's earnings. Sales would be up 1.02% from the year-ago period. MagnaChip Semiconductor's reported EPS has stacked up against analyst estimates in the past like this:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of MagnaChip Semiconductor were trading at $22.4 as of July 26. Over the last 52-week period, shares are up 102.38%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. MagnaChip Semiconductor is scheduled to hold the call at 17:00:00 ET and can be accessed here.