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Understanding ON Semiconductor Corp. (ON) Reliance on International Revenue
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Have you looked into how ON Semiconductor Corp. (ON - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this semiconductor components maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of ON's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.74 billion, marking a decrease of 17.2% from the year-ago quarter. We will next turn our attention to dissecting ON's international revenue to get a clearer picture of how significant its operations are outside its main base.
Exploring ON's International Revenue Patterns
Of the total revenue, $413.8 million came from United Kingdom during the last fiscal quarter, accounting for 23.9%. This represented a surprise of +9.02% as analysts had expected the region to contribute $379.57 million to the total revenue. In comparison, the region contributed $444 million, or 23.8%, and $449.4 million, or 21.5%, to total revenue in the previous and year-ago quarters, respectively.
Singapore accounted for 22.5% of the company's total revenue during the quarter, translating to $390.3 million. Revenues from this region represented a surprise of -4.24%, with Wall Street analysts collectively expecting $407.57 million. When compared to the preceding quarter and the same quarter in the previous year, Singapore contributed $433.2 million (23.3%) and $519.3 million (24.8%) to the total revenue, respectively.
During the quarter, Hong Kong contributed $453.5 million in revenue, making up 26.1% of the total revenue. When compared to the consensus estimate of $440.59 million, this meant a surprise of +2.93%. Looking back, Hong Kong contributed $405.4 million, or 21.8%, in the previous quarter, and $530.2 million, or 25.3%, in the same quarter of the previous year.
International Revenue Predictions
It is projected by analysts on Wall Street that ON Semiconductor Corp. will post revenues of $1.75 billion for the ongoing fiscal quarter, a decline of 19.7% from the year-ago quarter. The expected contributions from United Kingdom, Singapore and Hong Kong to this revenue are 22.1%, 23.3% and 25.6%, translating into $387.4 million, $408.27 million and $447.88 million, respectively.
For the full year, a total revenue of $7.14 billion is expected for the company, reflecting a decline of 13.4% from the year before. The revenues from United Kingdom, Singapore and Hong Kong are expected to make up 22.7%, 23.5% and 24.6% of this total, corresponding to $1.62 billion, $1.68 billion and $1.76 billion respectively.
Wrapping Up
ON Semiconductor Corp.'s reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Reviewing ON Semiconductor Corp.'s Recent Stock Price Trends
Over the past month, the stock has lost 7.4% versus the Zacks S&P 500 composite's 2.9% decrease. The Zacks Computer and Technology sector, of which ON Semiconductor Corp. is a part, has declined 8.7% over the same period. The company's shares have declined 3.6% over the past three months compared to the S&P 500's 5.9% increase. Over the same period, the sector has risen 6.3%.
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Understanding ON Semiconductor Corp. (ON) Reliance on International Revenue
Have you looked into how ON Semiconductor Corp. (ON - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this semiconductor components maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of ON's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.74 billion, marking a decrease of 17.2% from the year-ago quarter. We will next turn our attention to dissecting ON's international revenue to get a clearer picture of how significant its operations are outside its main base.
Exploring ON's International Revenue Patterns
Of the total revenue, $413.8 million came from United Kingdom during the last fiscal quarter, accounting for 23.9%. This represented a surprise of +9.02% as analysts had expected the region to contribute $379.57 million to the total revenue. In comparison, the region contributed $444 million, or 23.8%, and $449.4 million, or 21.5%, to total revenue in the previous and year-ago quarters, respectively.
Singapore accounted for 22.5% of the company's total revenue during the quarter, translating to $390.3 million. Revenues from this region represented a surprise of -4.24%, with Wall Street analysts collectively expecting $407.57 million. When compared to the preceding quarter and the same quarter in the previous year, Singapore contributed $433.2 million (23.3%) and $519.3 million (24.8%) to the total revenue, respectively.
During the quarter, Hong Kong contributed $453.5 million in revenue, making up 26.1% of the total revenue. When compared to the consensus estimate of $440.59 million, this meant a surprise of +2.93%. Looking back, Hong Kong contributed $405.4 million, or 21.8%, in the previous quarter, and $530.2 million, or 25.3%, in the same quarter of the previous year.
International Revenue Predictions
It is projected by analysts on Wall Street that ON Semiconductor Corp. will post revenues of $1.75 billion for the ongoing fiscal quarter, a decline of 19.7% from the year-ago quarter. The expected contributions from United Kingdom, Singapore and Hong Kong to this revenue are 22.1%, 23.3% and 25.6%, translating into $387.4 million, $408.27 million and $447.88 million, respectively.For the full year, a total revenue of $7.14 billion is expected for the company, reflecting a decline of 13.4% from the year before. The revenues from United Kingdom, Singapore and Hong Kong are expected to make up 22.7%, 23.5% and 24.6% of this total, corresponding to $1.62 billion, $1.68 billion and $1.76 billion respectively.
Wrapping Up
ON Semiconductor Corp.'s reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
ON Semiconductor Corp., bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing ON Semiconductor Corp.'s Recent Stock Price Trends
Over the past month, the stock has lost 7.4% versus the Zacks S&P 500 composite's 2.9% decrease. The Zacks Computer and Technology sector, of which ON Semiconductor Corp. is a part, has declined 8.7% over the same period. The company's shares have declined 3.6% over the past three months compared to the S&P 500's 5.9% increase. Over the same period, the sector has risen 6.3%.