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For second-quarter 2023, onsemi expects revenues between $1.98 billion and $2.08 billion. Earnings are expected in the range of $1.14-$1.28 per share.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.21 per share, unchanged in the past 30 days. The projection indicates a decline of 9.7% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $2.02 billion, suggesting a deterioration of 3.15% from the year-ago quarter’s reported figure.
ON Semiconductor Corporation Price and EPS Surprise
onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.54%.
Let’s see how things are shaping up prior to this announcement.
Factors to Note
onsemi’s second-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets. Our model estimate for second-quarter 2023 automotive segment revenues is pegged at $877.7 million, indicating a 12% year over year growth.
It is winning market share in the automotive segment, thanks to its silicon carbide dominance and intelligent power and sensing solution. Our model estimate for second-quarter 2023 intelligent sensing group revenues is pegged at $328.7 million, indicating a 5.6% year-over-year growth.
onsemi's EliteSIC silicon carbide modules increase the efficiency and lower the weight of the traction inverters, extending electric vehicle range and improving performance. These factors are likely to have driven its second-quarter top line.
In this regard, an expanding clientele in the likes of Volkswagen, Tesla, Mercedes Benz, Jaguar Land Rover, BMW AG, ZEEKR and Hyundai Motor Group are expected to have driven demand for silicon carbide and benefited top-line growth.
However, onsemi’s second-quarter top line is expected to have been affected by stiff competition and persistent weakness in non-strategic end markets. Also, lower factory utilization, negative impact of EFK fab acquisition and slow wafer starts are expected to have hurt margin performance in the to-be-reported quarter.
onsemi is expected to have faced supply chain constrains across several automotive technologies in the to-be reported quarter. Nevertheless, continuous growth in its Hudson, Czech Republic and South Korea manufacturing sites are expected to overcome supply chain issues.
What Our Model Indicates
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. That’s exactly the case here.
onsemi has an Earnings ESP of +1.34% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
onsemi (ON) to Report Q2 Earnings: What's in the Cards?
onsemi (ON - Free Report) is slated to release its second-quarter 2023 results on Jul 31.
For second-quarter 2023, onsemi expects revenues between $1.98 billion and $2.08 billion. Earnings are expected in the range of $1.14-$1.28 per share.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.21 per share, unchanged in the past 30 days. The projection indicates a decline of 9.7% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $2.02 billion, suggesting a deterioration of 3.15% from the year-ago quarter’s reported figure.
ON Semiconductor Corporation Price and EPS Surprise
ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote
onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.54%.
Let’s see how things are shaping up prior to this announcement.
Factors to Note
onsemi’s second-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets. Our model estimate for second-quarter 2023 automotive segment revenues is pegged at $877.7 million, indicating a 12% year over year growth.
It is winning market share in the automotive segment, thanks to its silicon carbide dominance and intelligent power and sensing solution. Our model estimate for second-quarter 2023 intelligent sensing group revenues is pegged at $328.7 million, indicating a 5.6% year-over-year growth.
onsemi's EliteSIC silicon carbide modules increase the efficiency and lower the weight of the traction inverters, extending electric vehicle range and improving performance. These factors are likely to have driven its second-quarter top line.
In this regard, an expanding clientele in the likes of Volkswagen, Tesla, Mercedes Benz, Jaguar Land Rover, BMW AG, ZEEKR and Hyundai Motor Group are expected to have driven demand for silicon carbide and benefited top-line growth.
However, onsemi’s second-quarter top line is expected to have been affected by stiff competition and persistent weakness in non-strategic end markets. Also, lower factory utilization, negative impact of EFK fab acquisition and slow wafer starts are expected to have hurt margin performance in the to-be-reported quarter.
onsemi is expected to have faced supply chain constrains across several automotive technologies in the to-be reported quarter. Nevertheless, continuous growth in its Hudson, Czech Republic and South Korea manufacturing sites are expected to overcome supply chain issues.
What Our Model Indicates
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. That’s exactly the case here.
onsemi has an Earnings ESP of +1.34% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Fair Isaac (FICO - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fair Isaac’s shares have returned 39.5% year to date. FICO is set to report its third-quarter fiscal 2023 results on Aug 2.
Etsy (ETSY - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank of 3.
Etsy’s shares have declined 19.5% year to date. ETSY is set to report second-quarter 2023 results on Aug 2.
Perion Network (PERI - Free Report) has an Earnings ESP of +5.14% and is Zacks #2 Ranked.
PERI’s shares have gained 36.4% year-to-date. Perion Network is set to report its second-quarter 2023 results on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.