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ON Semiconductor Corp. (ON) Up 2.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for ON Semiconductor Corp. (ON - Free Report) . Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
onsemi Q2 Earnings Beat Estimates, Revenues Down Y/Y
onsemi reported second-quarter 2024 non-GAAP earnings of 96 cents per share, outpacing the Zacks Consensus Estimate by 4.35% but declining 27.8% year over year.
Revenues of $1.73 billion beat the Zacks Consensus Estimate by 0.2% but declined 17.2% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $835.2 million (contributing 48.1% to revenues) fell 14.5% year over year. The figure beat the Zacks Consensus Estimate by 2%.
Analog & Mixed Group revenues of $647.8 million (37.3% of revenues) declined 18.2% on a year-over-year basis. The figure beat the consensus mark by 0.70%.
Intelligent Sensing Group revenues of $252.2 million (14.5% of revenues) fell 22.4% year over year. The figure missed the consensus mark by 6.03%.
In terms of end markets, Automotive (52.3% of revenues) revenues were $906.9 million, down 14.6% year over year. The figure also missed the Zacks Consensus Estimate by 4.93%.
Industrial (27% of revenues) end-market (including military, aerospace and medical) revenues declined 23.2% year over year to $468 million. The figure beat the consensus mark by 5.99%.
Others (20.8% of revenues) end-market revenues declined 14.9% year over year to $360.3 million. The figure beat the consensus mark by 7.65%.
Operating Details
Non-GAAP gross margin contracted 210 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 0.9% year over year to $308.4 million.
Non-GAAP operating margin was 27.5%, down 530 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Jun 28, 2024, onsemi had cash and cash equivalents of $2.23 billion compared with $2.61 billion as of Mar 29, 2024.
Total debt (including the current portion), as of Jun 28, 2024, was $3.34 billion, unchanged sequentially.
Second-quarter 2024 cash flow from operations amounted to $362.2 million compared with the previous quarter’s reported figure of $498.7 million.
Free cash flow amounted to $207.7 million compared with free cash flow of $276.3 million in the previous quarter.
Guidance
For the third quarter of 2024, onsemi expects revenues between $1.7 billion and $1.8 billion.
Non-GAAP gross margin is projected in the range of 44.4-46.4%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between 91 cents per share and 1.03 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, ON Semiconductor Corp. has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, ON Semiconductor Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ON Semiconductor Corp. is part of the Zacks Semiconductor - Analog and Mixed industry. Over the past month, NXP Semiconductors (NXPI - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
NXP reported revenues of $3.13 billion in the last reported quarter, representing a year-over-year change of -5.2%. EPS of $3.20 for the same period compares with $3.43 a year ago.
NXP is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of -7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for NXP. Also, the stock has a VGM Score of D.
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ON Semiconductor Corp. (ON) Up 2.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for ON Semiconductor Corp. (ON - Free Report) . Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
onsemi Q2 Earnings Beat Estimates, Revenues Down Y/Y
onsemi reported second-quarter 2024 non-GAAP earnings of 96 cents per share, outpacing the Zacks Consensus Estimate by 4.35% but declining 27.8% year over year.
Revenues of $1.73 billion beat the Zacks Consensus Estimate by 0.2% but declined 17.2% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $835.2 million (contributing 48.1% to revenues) fell 14.5% year over year. The figure beat the Zacks Consensus Estimate by 2%.
Analog & Mixed Group revenues of $647.8 million (37.3% of revenues) declined 18.2% on a year-over-year basis. The figure beat the consensus mark by 0.70%.
Intelligent Sensing Group revenues of $252.2 million (14.5% of revenues) fell 22.4% year over year. The figure missed the consensus mark by 6.03%.
In terms of end markets, Automotive (52.3% of revenues) revenues were $906.9 million, down 14.6% year over year. The figure also missed the Zacks Consensus Estimate by 4.93%.
Industrial (27% of revenues) end-market (including military, aerospace and medical) revenues declined 23.2% year over year to $468 million. The figure beat the consensus mark by 5.99%.
Others (20.8% of revenues) end-market revenues declined 14.9% year over year to $360.3 million. The figure beat the consensus mark by 7.65%.
Operating Details
Non-GAAP gross margin contracted 210 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 0.9% year over year to $308.4 million.
Non-GAAP operating margin was 27.5%, down 530 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Jun 28, 2024, onsemi had cash and cash equivalents of $2.23 billion compared with $2.61 billion as of Mar 29, 2024.
Total debt (including the current portion), as of Jun 28, 2024, was $3.34 billion, unchanged sequentially.
Second-quarter 2024 cash flow from operations amounted to $362.2 million compared with the previous quarter’s reported figure of $498.7 million.
Free cash flow amounted to $207.7 million compared with free cash flow of $276.3 million in the previous quarter.
Guidance
For the third quarter of 2024, onsemi expects revenues between $1.7 billion and $1.8 billion.
Non-GAAP gross margin is projected in the range of 44.4-46.4%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between 91 cents per share and 1.03 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, ON Semiconductor Corp. has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, ON Semiconductor Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ON Semiconductor Corp. is part of the Zacks Semiconductor - Analog and Mixed industry. Over the past month, NXP Semiconductors (NXPI - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
NXP reported revenues of $3.13 billion in the last reported quarter, representing a year-over-year change of -5.2%. EPS of $3.20 for the same period compares with $3.43 a year ago.
NXP is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of -7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for NXP. Also, the stock has a VGM Score of D.