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onsemi (ON) to Report Q3 Earnings: What's in the Cards?

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onsemi (ON - Free Report) is set to release third-quarter 2021 results on Nov 1.

For the quarter, the company expects revenues between $1.66 billion and $1.76 billion. Earnings are expected in the range of 68-80 cents per share.

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 74 cents per share, down by a penny over the past 30 days but indicating a surge of 174.1% from the figure reported in the year-ago quarter.

The consensus estimate for revenues is pegged at $1.71 billion, which suggests an improvement of 30% from the year-ago quarter’s reported figure.
 

 

onsemi’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 24.7%, on average.

Let’s see how things have shaped up for onsemi prior to this announcement.

Factors to Consider

onsemi is benefiting from broad-based strength across industrial, computing, consumer and automotive end-markets. The company continues to gain traction among electric vehicle manufacturers. It is witnessing a solid demand environment, particularly for its power and sensing products, which it expects to continue in the near term.

The Zacks Consensus Estimate for revenues for the Automotive end market is pegged at $566 million, which suggests year-over-year growth of 35.1%.

The Industrial market is expected to have benefited from strong demand for power modules. The Zacks Consensus Estimate is currently pegged at $415 million for the Industrial/Medical/Mil-Aero end markets, which suggests an improvement of 35% year over year.

Communications end-market revenues are anticipated to have been driven by rapid deployment of 5G. The Zacks Consensus Estimate for revenues is currently pegged at $264 million for the Communications end-markets, indicating growth of 3.5% year over year.

Continued strength in client and server business is anticipated to have added to the top line in the Computing end-market segment. The Zacks Consensus Estimate for revenues is currently pegged at $263 million for the Computing end markets, which indicates an increase of 53% year over year.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

onsemi has an Earnings ESP of -4.38% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Apple (AAPL - Free Report) has an Earnings ESP of +3.96% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clarivate (CLVT - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #2.

Wesco International (WCC - Free Report) has an Earnings ESP of +7.87% and a Zacks Rank #2.


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