- ON Semiconductor’s second-quarter revenue was $1.47 billion, surpassing the estimated $1.45 billion, but it decreased by 15% compared to the previous year.
- The Analog and Mixed-Signal Group reported revenue of $555.9 million, a 14% decrease year over year, slightly below the estimated $558.2 million.
- Power Solutions revenue fell by 16% from last year, totaling $698.2 million.
- The Intelligent Sensing Group generated $214.6 million in revenue, a 15% decrease, notably missing the estimate of $236.1 million.
- Adjusted earnings per share matched the estimate at 53 cents, a significant drop from last year’s 96 cents.
- Adjusted gross margin stood at 37.6%, slightly above the estimated 37.5% but down from 45.3% last year.
- The adjusted operating margin was 17.3%, slightly under the estimate of 17.5% and down from 27.5% a year ago.
- Research and Development expenses were $143.8 million, an 8.1% decrease from the previous year, below the estimated $151.8 million.
- Adjusted operating expenses slightly decreased by 3.5% year over year to $297.7 million, compared to the estimated $292.1 million.
- Third-quarter forecasts predict adjusted EPS between 54 cents and 64 cents, with the consensus estimate at 58 cents.
- The company expects third-quarter revenue between $1.47 billion and $1.57 billion, slightly above the forecasted $1.5 billion.
- Adjusted gross margin is projected to range from 36.5% to 38.5%, around the estimate of 37.7%.
- Projected adjusted operating expenses for the third quarter are between $280 million and $295 million, aligning tightly with the $288 million estimate.
- ON Semiconductor shares dropped 5.6% in pre-market trading to $53.62, with 19,744 shares exchanged.
- Current analyst consensus includes 17 buy ratings, 17 hold ratings, and 1 sell rating for the company.
On Semiconductor on Smartkarma
On Semiconductor has been receiving positive analyst coverage on Smartkarma, a platform where independent analysts publish research. Baptista Research, a prominent provider on the platform, has published two insightful reports on On Semiconductor. In their report titled “ON Semiconductor: A Tale Of Restructuring & Non-Core Business Exits For Long-Term Growth & Profitability!“, Baptista Research discusses the company’s strategic maneuvers and challenges in the current economic landscape. They highlight ON Semiconductor’s first-quarter 2025 revenues exceeding expectations at $1.45 billion, with a non-GAAP gross margin of 40%, reflecting the impact of operational strategies.
Similarly, in their report “ON Semiconductor: Silicon Carbide Growth & Market Positioning Driving Our Optimism!“, Baptista Research remains bullish on the company. They analyze On Semiconductor Corporation’s performance in the fourth quarter and full year 2024, emphasizing the focus on intelligent power and sensing technologies in automotive, industrial, and AI data centers. With a full-year revenue of $7.1 billion and a non-GAAP gross margin of 45.5%, the report underscores the company’s commitment to its transformation strategy, driving optimism among analysts.
A look at On Semiconductor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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ON Semiconductor Corporation, a supplier of analog, standard logic, and discrete semiconductors for data and power management, faces a mixed long-term outlook based on the Smartkarma Smart Scores. While the company scores well in terms of momentum, indicating a strong performance trend, other key factors such as dividend and growth score lower. With a moderate score in value, there are some positive aspects to consider, but growth and dividend scores highlight potential areas of concern for investors.
Overall, ON Semiconductor Corporation’s Smartkarma Smart Scores reflect a company that is experiencing strong momentum in the market. However, investors may want to cautiously assess the lower scores in dividend and growth, which suggest some challenges in these areas. With a solid resilience score and moderate value score, ON Semiconductor’s long-term prospects may depend on how the company addresses its growth and dividend strategies to complement its current momentum.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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