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For second-quarter 2024, onsemi expects revenues to be between $1.68 billion and $1.78 billion. Earnings are expected in the range of 86-98 cents per share.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 93 cents, unchanged in the past 30 days and indicating a decline of 30.08% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.73 billion, suggesting a decline of 17.32% 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 5.24%.
Let us see how things are shaping up prior to this announcement.
Factors Likely to Have Influenced Q2 Performance
ON’s second-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets, particularly in areas such as electric vehicles, advanced driver-assistance systems and energy infrastructure.
onsemi’s broad-based strength across industrial, computing, consumer and automotive end-markets for silicon carbide and insulated-gate bipolar transistor-based products is likely to have been a tailwind.
The company is winning market share in the automotive segment, thanks to its silicon carbide dominance and intelligent power and sensing solutions. This is expected to have contributed well in the quarter under review.
The shift toward higher-resolution image sensors for Advanced Driver Assistance Systems (ADAS) is expected to have contributed to the top-line growth in the second quarter. onsemi’s revenues from 8-megapixel image sensors grew significantly, indicating strong market demand for these higher-resolution image sensors.
onsemi’s investments in high-efficiency power solutions for data centers, driven by the rise of AI, are expected to provide ongoing opportunities. It expects increasing demand for power solutions in next-generation AI server racks.
However, onsemi’s margin may be under pressure in the near term due to the silicon carbide ramp and frequent buyouts impacting its balance sheet, potentially affecting top-line growth in the to-be-reported quarter.
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. But that is not the exact case here.
onsemi has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some 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?
On Semiconductor (ON - Free Report) is slated to release its second-quarter 2024 results on Jul 29.
For second-quarter 2024, onsemi expects revenues to be between $1.68 billion and $1.78 billion. Earnings are expected in the range of 86-98 cents per share.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 93 cents, unchanged in the past 30 days and indicating a decline of 30.08% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.73 billion, suggesting a decline of 17.32% 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 5.24%.
Let us see how things are shaping up prior to this announcement.
Factors Likely to Have Influenced Q2 Performance
ON’s second-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets, particularly in areas such as electric vehicles, advanced driver-assistance systems and energy infrastructure.
onsemi’s broad-based strength across industrial, computing, consumer and automotive end-markets for silicon carbide and insulated-gate bipolar transistor-based products is likely to have been a tailwind.
The company is winning market share in the automotive segment, thanks to its silicon carbide dominance and intelligent power and sensing solutions. This is expected to have contributed well in the quarter under review.
The shift toward higher-resolution image sensors for Advanced Driver Assistance Systems (ADAS) is expected to have contributed to the top-line growth in the second quarter. onsemi’s revenues from 8-megapixel image sensors grew significantly, indicating strong market demand for these higher-resolution image sensors.
onsemi’s investments in high-efficiency power solutions for data centers, driven by the rise of AI, are expected to provide ongoing opportunities. It expects increasing demand for power solutions in next-generation AI server racks.
However, onsemi’s margin may be under pressure in the near term due to the silicon carbide ramp and frequent buyouts impacting its balance sheet, potentially affecting top-line growth in the to-be-reported quarter.
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. But that is not the exact case here.
onsemi has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have gained 47.2% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of #2 at present.
Apple shares have gained 16.9% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 2.2% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.