ON Semiconductor (ON) on Monday beat Wall Street’s targets for the first quarter but guided below views for the current period. Still, ON stock rose in early trading.
X
The Scottsdale, Ariz.-based company, better known as Onsemi, earned an adjusted $1.08 a share on sales of $1.86 billion in the March quarter. Analysts polled by FactSet had expected earnings of $1.04 a share on sales of $1.85 billion. On a year-over-year basis, Onsemi earnings fell 9% while sales decreased 5%.
With its first-quarter report, Onsemi now has posted five straight quarters of declining earnings on a year-over-year basis. Sales have decreased for three quarters in a row as it navigates a cyclical slowdown in demand.
For the current quarter, Onsemi expects to earn an adjusted 92 cents a share on sales of $1.73 billion. That’s based on the midpoint of its guidance. Analysts were looking for earnings of $1 a share on sales of $1.82 billion in the second quarter. In the same quarter last year, Onsemi earned $1.33 a share on sales of $2.09 billion.
ON Stock Rises On Earnings News
In premarket trading on the stock market today, ON stock advanced 0.9% to 68.70.
Onsemi makes power and sensor chips for the automotive and industrial markets. Its fortunes are tied to such megatrends as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure.
“As power continues to play a critical role in the world’s increasing energy demands, efficiency is paramount, and we are positioned to continue to gain share with our portfolio of industry-leading power and sensing technologies,” Chief Executive Hassane El-Khoury said in a news release.
Other semiconductor stocks exposed to the automotive and industrial markets include NXP Semiconductors (NXPI), STMicroelectronics (STM) and Texas Instruments (TXN).
ON stock ranks No. 13 out of 33 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 49 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Microsoft, Google Reports Lift Nvidia, Super Micro, Other AI Hardware Makers
Chip Gear Vendor KLA Tops March-Quarter Views As Business Stabilizes
Intel Stock Drops As Chipmaker Guides Below Views For Q2
MarketSurge: Research, Charts, Data And Coaching All In One Place
Signup bonus from
