- ON Semiconductor’s 2nd quarter adjusted operating expenses forecast: $285 million to $300 million, beating the estimate of $301.5 million.
- Projected adjusted EPS for the 2nd quarter: 48c to 58c, with an estimate standing at 51c.
- Revenue outlook for the 2nd quarter: between $1.40 billion and $1.50 billion, slightly up from the estimate of $1.41 billion.
- Anticipated adjusted gross margin: 36.5% to 38.5%, slightly below the estimated 39%.
- First Quarter revenue totaled $1.45 billion, a decrease of 22% year-over-year, surpassing the estimate of $1.4 billion.
- Analog and mixed-signal group revenue hit $566.4 million, down 19% year-over-year, exceeding the estimated $534.9 million.
- Power Solutions revenue came in at $645.1 million, marking a 26% decline year-over-year.
- Intelligent Sensing Group Revenue was $234.2 million, a 20% drop year-over-year, falling short of the estimated $246.4 million.
- The adjusted EPS for the first quarter was 55c, compared to $1.08 year-over-year, surpassing the estimate of 51c.
- Adjusted gross margin stood at 40%, compared to 45.9% year-over-year, matching the estimate of 40.1%.
- Adjusted operating margin was 18.3%, compared to 29% year-over-year, beating the estimate of 17.3%.
- R&D expenses were $164.1 million, up 9.4% year-over-year, exceeding the estimate of $159.6 million.
- Shares rose by 2.5% in pre-market trading to $42.97 with 14,857 shares exchanged.
- Analyst Recommendations: 16 buys, 14 holds, 1 sell.
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On Semiconductor on Smartkarma
On Semiconductor‘s analyst coverage on Smartkarma by Baptista Research highlights a positive outlook on the company’s performance. In their report titled “ON Semiconductor: Silicon Carbide Growth & Market Positioning Driving Our Optimism!” the company’s focus on intelligent power and sensing technologies, especially in automotive, industrial, and AI data centers, is seen as a key driver for optimism. Despite facing challenging market conditions, ON Semiconductor reported a revenue of $7.1 billion for the full year with a non-GAAP gross margin of 45.5%, reflecting their commitment to strategic transformation.
In another report by Baptista Research, “ON Semiconductor Corporation: Mass Market Strategy & Inventory Management Driving Our Optimism! – Major Drivers,” the analyst emphasizes the company’s balanced approach to overcoming macroeconomic challenges and implementing strategic initiatives for long-term growth. Despite softer market conditions, ON Semiconductor managed to meet or exceed its revenue, gross margin, and earnings per share guidance midpoint, showcasing operational resilience. Baptista Research‘s evaluation aims to provide insights into the factors influencing the company’s stock price and includes an independent valuation using a Discounted Cash Flow methodology.
A look at On Semiconductor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
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 provider of analog and standard logic semiconductors, faces a mixed long-term outlook according to Smartkarma Smart Scores analysis. While the company receives favorable ratings in Growth and Resilience, scoring a 4 in both aspects, its Value score stands at a moderate 3. This suggests that investors may find ON Semiconductor’s growth potential and ability to weather market challenges appealing. However, the company’s low Dividend score of 1 and modest Momentum score of 2 indicate areas that may require further attention for investors seeking stable income and short-term performance.
ON Semiconductor’s focus on supplying analog and discrete semiconductors for data and power management underpins its operations. With a product portfolio encompassing integrated circuits and analog ICs, the company also offers a range of discrete semiconductors in various packaging options. This diversified product offering positions ON Semiconductor to cater to diverse market needs and indicates potential for sustained growth and adaptability 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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