- Revenue Performance: ON Semi’s revenue for the second quarter was $1.74 billion, a decline of 17% year-over-year. However, it met the estimate of $1.73 billion.
- Power Solutions Revenue: $835.2 million, a notable 25% drop compared to last year.
- Analog Solutions Group: Revenue was $647.8 million, a very slight decrease of 0.3% year-over-year, surpassing the estimate of $593.7 million.
- Intelligent Sensing Group: Revenue stood at $252.2 million, a decline of 22% year-over-year, missing the estimate of $272.4 million.
- Adjusted Earnings Per Share (EPS): Adjusted EPS was 96 cents, versus $1.33 year-over-year, exceeding the estimate of 92 cents.
- Reported EPS: 78 cents versus $1.29 year-over-year, but below the estimate of 87 cents.
- Adjusted Gross Margin: 45.3%, down from 47.4% year-over-year, but slightly above the estimate of 45.2%.
- Adjusted Operating Margin: 27.5%, down from 32.8% year-over-year, yet better than the estimated 26.8%.
- R&D Expenses: $156.5 million, an increase of 7.7% year-over-year, compared to the estimate of $154.3 million.
- Third Quarter Forecast:
- Adjusted EPS forecasted between 91 cents and $1.03, with an estimate of 97 cents.
- Adjusted gross margin expected to be between 44.4% and 46.4%, against an estimate of 45.4%.
- Revenue forecasted between $1.70 billion and $1.80 billion, with an estimate of $1.78 billion.
- Pre-market Trading: Shares rose by 3.3% to $72.49 with 23,714 shares traded.
- Analyst Ratings: 18 buys, 12 holds, and 3 sells.
On Semiconductor on Smartkarma
On Semiconductor is garnering positive attention from analysts on Smartkarma, an independent investment research network. Baptista Research, in their report titled “ON Semiconductor Corporation: Adoption in Low-Cost Electric Vehicles and Broad Technology Offering! – Major Drivers,” highlighted the company’s strong performance in Q1 2024. With a revenue of $1.86 billion and non-GAAP gross margin of 45.9%, ON Semiconductor exceeded market expectations. The report also emphasizes the company’s growth in new design wins and market share in silicon and silicon carbide, showcasing its prowess in innovative power and sensing technologies. Baptista Research is evaluating various factors that could impact the company’s stock price and conducting an independent valuation using the Discounted Cash Flow (DCF) methodology.
In another bullish report by Baptista Research, titled “ON Semiconductor Corporation: Growth in Silicon Carbide Business,” the analyst commended ON Semiconductor’s performance in the fourth quarter of 2023. Despite challenging market conditions, the company achieved a remarkable non-GAAP gross margin of 46.7%, surpassing previous estimates. The report also acknowledges ON Semiconductor’s successful transformation and structural adjustments, leading to impressive results even with a reduced utilization rate of 66%. These analyses reflect a positive sentiment towards ON Semiconductor’s strategic initiatives and financial performance, positioning the company favorably in the market.
A look at On Semiconductor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| 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
On Semiconductor Corporation, a company specializing in analog, standard logic, and discrete semiconductors for data and power management, has received a positive long-term outlook based on the Smartkarma Smart Scores. With a strong growth score of 5, On Semiconductor is positioned for potential expansion and development in the future. Its value score of 3 reflects a decent valuation, while its resilience and momentum scores stand at 3 each, indicating stability and consistent performance.
Although On Semiconductor may not be a top choice for dividend investors due to its lower score of 1 in that category, the overall picture painted by the Smartkarma Smart Scores suggests a promising future for the company. Investors looking for growth opportunities in the semiconductor industry may find On Semiconductor to be an appealing prospect based on its positive outlook and strong performance in growth-related factors.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
