- ON Semiconductor’s fourth-quarter revenue of $1.72 billion fell short of the estimated $1.76 billion, marking a 15% decrease compared to the previous year.
- The Power Solutions segment generated $809.4 million, down 25% from the previous year.
- The Intelligent Sensing Group reported $302.5 million in revenue, slightly above the estimated $273.3 million, and a 1.7% decline from the prior year.
- Adjusted earnings per share (EPS) came in at 95 cents, missing the estimate of 97 cents and down from $1.25 the previous year.
- The adjusted gross margin was 45.3%, compared to 46.7% the previous year and an estimated 45%.
- Reported EPS was 88 cents, down from $1.28 in the same period last year.
- The adjusted operating margin was 26.7%, slightly below the estimated 27.6%, and down from 31.6% year-over-year.
- Research and Development (R&D) expenses totaled $155.2 million, a 3.3% increase, exceeding estimates of $152.2 million.
- Shares of ON Semiconductor fell 5% in pre-market trading to $48.69, with 27,170 shares traded.
- Analyst recommendations include 19 buys, 13 holds, and 2 sells.
On Semiconductor on Smartkarma
On Semiconductor has garnered positive analyst coverage on Smartkarma, specifically highlighted by Baptista Research. In their recent report, Baptista Research emphasizes the company’s strategic approach through a Mass Market Strategy and effective Inventory Management. The analysis of ON Semiconductor’s third-quarter 2024 earnings report reflects a resilient operational performance amidst challenging macroeconomic conditions. By meeting or surpassing revenue, gross margin, and earnings per share targets, the company showcases its ability to navigate softer market environments. Baptista Research delves into various factors that could impact the company’s stock price in the near future, employing a Discounted Cash Flow (DCF) methodology for an independent valuation.
A look at On Semiconductor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
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
ON Semiconductor Corporation, a supplier of analog, standard logic, and discrete semiconductors focusing on data and power management, has a mixed outlook based on Smartkarma Smart Scores. While the company demonstrates strong growth potential with a score of 4 in that category, its dividend and momentum scores are lower at 1 and 2 respectively, indicating areas of potential concern. The company’s value and resilience scores stand at 3 each, painting a moderate picture for investors looking at the long-term prospects of ON Semiconductor.
The company’s product portfolio includes integrated circuits and analog ICs, along with a range of discrete semiconductors in various packages. With an overall Smart Score derived from individual indicators, ON Semiconductor positions itself with a decent growth trajectory, albeit with room for improvement in dividend yield and momentum to enhance its long-term performance in the semiconductor industry.
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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