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onsemi (ON) Q4 Earnings Beat Estimates, Revenues Down Y/Y
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onsemi (ON - Free Report) reported fourth-quarter 2023 non-GAAP earnings of $1.25 per share, outpacing the Zacks Consensus Estimate by 3.3% but declining 5.3% year over year.
Revenues of $2.02 billion beat the Zacks Consensus Estimate by 0.7% but declined 4.1% on a year-over-year basis.
onsemi shares were up roughly 6% in pre-market trading. The company’s shares have declined 15.2% year to date, underperforming the Zacks Computer & Technology sector’s increase of 5.6%.
Top-Line Details
Power Solutions Group revenues of $1.09 billion (accounting for 53.8% of revenues) increased 3.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.
Advanced Solutions Group revenues of $624.6 million (30.9% of revenues) decreased 10.9% on a year-over-year basis. The figure beat the consensus mark by 1.45%.
Intelligent Sensing Group revenues of $307.7 million (15.2% of revenues) fell 13.2% year over year. However, the figure missed the consensus mark by 6.09%.
In terms of end markets, Automotive (55.2% of revenues) revenues were $1.11 billion, up 12.7% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.
Industrial (24.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 10% year over year to $497.1 million. The figure lagged the consensus mark by 11.4%.
Others (20.2% of revenues) end-market revenues declined 27.7% year over year to $406.8 million. The figure beat the consensus mark by 19.42%.
Operating Details
Non-GAAP gross margin contracted 170 basis points (bps) year over year to 46.7%.
Non-GAAP operating expenses increased 2% year over year to $306.4 million.
Non-GAAP operating margin was 31.6%, down 260 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2023, onsemi had cash and cash equivalents of $2.48 billion compared with $2.68 billion as of Sep 29, 2023.
Total debt (including the current portion), as of Dec 31, 2023, was $3.34 billion, down from $3.45 billion reported as of Sep 29.
Fourth-quarter 2023 cash flow from operations amounted to $611.2 million compared with the previous quarter’s reported figure of $566.6 million.
Free cash flow amounted to $220.7 million compared with free cash flow of $133.6 million in the previous quarter.
Guidance
For the first quarter of 2024, onsemi expects revenues between $1.80 billion and $1.90 billion.
Non-GAAP gross margin is projected in the range of 44.5-46.5%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between 98 cents per share and $1.10 per share.
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onsemi (ON) Q4 Earnings Beat Estimates, Revenues Down Y/Y
onsemi (ON - Free Report) reported fourth-quarter 2023 non-GAAP earnings of $1.25 per share, outpacing the Zacks Consensus Estimate by 3.3% but declining 5.3% year over year.
Revenues of $2.02 billion beat the Zacks Consensus Estimate by 0.7% but declined 4.1% on a year-over-year basis.
onsemi shares were up roughly 6% in pre-market trading. The company’s shares have declined 15.2% year to date, underperforming the Zacks Computer & Technology sector’s increase of 5.6%.
Top-Line Details
Power Solutions Group revenues of $1.09 billion (accounting for 53.8% of revenues) increased 3.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.
Advanced Solutions Group revenues of $624.6 million (30.9% of revenues) decreased 10.9% on a year-over-year basis. The figure beat the consensus mark by 1.45%.
ON Semiconductor Corporation Price
ON Semiconductor Corporation price | ON Semiconductor Corporation Quote
Intelligent Sensing Group revenues of $307.7 million (15.2% of revenues) fell 13.2% year over year. However, the figure missed the consensus mark by 6.09%.
In terms of end markets, Automotive (55.2% of revenues) revenues were $1.11 billion, up 12.7% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.
Industrial (24.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 10% year over year to $497.1 million. The figure lagged the consensus mark by 11.4%.
Others (20.2% of revenues) end-market revenues declined 27.7% year over year to $406.8 million. The figure beat the consensus mark by 19.42%.
Operating Details
Non-GAAP gross margin contracted 170 basis points (bps) year over year to 46.7%.
Non-GAAP operating expenses increased 2% year over year to $306.4 million.
Non-GAAP operating margin was 31.6%, down 260 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2023, onsemi had cash and cash equivalents of $2.48 billion compared with $2.68 billion as of Sep 29, 2023.
Total debt (including the current portion), as of Dec 31, 2023, was $3.34 billion, down from $3.45 billion reported as of Sep 29.
Fourth-quarter 2023 cash flow from operations amounted to $611.2 million compared with the previous quarter’s reported figure of $566.6 million.
Free cash flow amounted to $220.7 million compared with free cash flow of $133.6 million in the previous quarter.
Guidance
For the first quarter of 2024, onsemi expects revenues between $1.80 billion and $1.90 billion.
Non-GAAP gross margin is projected in the range of 44.5-46.5%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between 98 cents per share and $1.10 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
Shopify (SHOP - Free Report) , Pinterest (PINS - Free Report) and AvidXchange (AVDX - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 6.5% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
Pinterest shares have gained 7.3% year to date. PINS is set to report its fourth-quarter 2023 results on Feb 8.
AvidXchange shares have declined 8.6% year to date. AVDX is set to report its fourth-quarter 2023 results on Feb 28.