Still down 26% over the last year, is ON Semi stock on the verge of a cyclical shift?ON Semiconductor (ON 11.54%) stock price jumped Monday thanks to better-than-expected second-quarter results. The chip company's share price closed out the trading session up 11.5%, according to data from S&P Global Market Intelligence.ON Semi reported Q2 results before the market opened Monday, posting results that beat Wall Street's expectations. The company reported non-GAAP (adjusted) EPS of $0.96 on sales of $1.74 bill ...

Key TakeawaysThe S&P 500 edged 0.1% higher on Monday, July 29, kicking off a trading week that will feature a Fed policy meeting and a slate of tech earnings reports.ON Semiconductor shares soared after strength in the automotive industry helped the chipmaker top quarterly sales forecasts.Shares of solar companies moved lower as federal officials warned about cybersecurity risks to renewable energy infrastructure. Major U.S. equities indexes were mixed and little changed on the first trading day of the week ...

onsemi (ON) 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% ...

Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenue of $1.74 billion, a decline of 7% sequentially and 17% year-over-year, primarily due to ongoing inventory correction in automotive and industrial markets [20][21] - Non-GAAP gross margin was 45.3%, down from 45.9% in Q1 and 47.4% in Q2 2023, while GAAP gross margin was 45.2% [22] - Non-GAAP operating margin was 27.5%, with GAAP operating margin at 22.4% [23] - Diluted GAAP earnings per share were $0.78, compared to $1.29 in the same quarter last year, while non-GAAP earnings per share were $0.96, down from $1.33 [24] Business Line Data and Key Metrics Changes - Automotive revenue was $907 million, down 11% sequentially and 15% year-over-year [21] - Industrial revenue was $468 million, a decrease of 2% sequentially and 23% year-over-year [21] - Revenue for the Power Solutions Group (PSG) was $835 million, down 15% year-over-year; Analog and Mixed-Signal Group (AMG) revenue was $648 million, down 18% year-over-year; Intelligent Sensing Group (ISG) revenue was $252 million, down 22% year-over-year [22] Market Data and Key Metrics Changes - The Asia-Pacific region, particularly China, is showing signs of recovery, driven by automotive and industrial demand [10] - The company is a market-share leader in silicon carbide in China, designed into nearly 60% of BEV models from OEMs [15] - The company expects to outgrow the silicon carbide market growth by 2x in 2024 through share gain and geographical diversification [17] Company Strategy and Development Direction - The company is focused on building its strategic portfolio in Analog, Mixed-Signal, and Power Solutions, with significant design wins in power [10] - A multi-year investment in a vertically integrated silicon carbide manufacturing facility in the Czech Republic aims to meet rising demand and enhance supply chain resilience [14] - The acquisition of SWIR Vision Systems is intended to strengthen the company's industrial and defense product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in demand in core markets, with expectations for recovery in parts of industrial, particularly Energy Infrastructure, in the second half of the year [9] - The company remains committed to its long-term financial model and continues to invest in R&D despite market downturns [28] - Management anticipates Q3 revenue in the range of $1.7 billion to $1.8 billion, with non-GAAP gross margin between 44.4% and 46.4% [26] Other Important Information - The company has deployed 78% of its free cash flow for share repurchases over the last 12 months, significantly higher than its long-term target of returning 50% [28] - Inventory increased by $78 million sequentially, with total inventory days rising to 214 days [25] Q&A Session Summary Question: Any pluses or minuses by your three segments for the third quarter guide? - Management expects both automotive and industrial to be down, with some stabilization in industrial [32] Question: How do you see your different end markets, especially automotive, do you expect that to be up, down, flat sequentially? - Management expects automotive and industrial to be flat-to-up slightly in Q3 [39] Question: How did the silicon carbide business trend in Q2? - Management will cover silicon carbide revenue on an annual basis, but expects to grow at 2x the market [46] Question: What is the outlook for distribution inventory? - Management expects distribution inventory to remain around 9 weeks for the short term [48] Question: What does the silicon carbide backlog look like? - The silicon carbide backlog is healthy despite short-term softness in the EV market [51] Question: Any thoughts on the ramp of 200-millimeter silicon carbide? - The company is on track to qualify 8-inch substrates this year, with revenue expected next year [55] Question: Why would distributors want to take up their inventory? - The company is strategically replenishing the mass market, which had been underserved [79]

Key TakeawaysOnsemi shares surged Monday after the chipmaker reported better-than-expected revenue and highlighted gains in the automotive industry.Onsemi recently signed an agreement with Volkswagon to supply the automaker with chips for its electric vehicles.The company provided guidance for the coming quarter that was in line with analysts' expectations. Onsemi's (ON) stock price soared over 13% in early trading Monday, leading gains on the S&P 500 after the chipmaker reported better-than-expected revenu ...

ON Semiconductor Corp. (ON) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.35%. A quarter ago, it was expected that this semiconductor components maker would post earnings of $1.04 per share when it actually produced earnings of $1.08, delivering a surprise of 3.85%.Over the last f ...

Exhibit 99.1 onsemi Announces Second Quarter 2024 Results Free cash flow increase of ~$250 million year over year SCOTTSDALE, Ariz., – July 29, 2024 – onsemi (the "Company") (Nasdaq: ON) today announced results for the second quarter of 2024 with the following highlights: • Revenue of $1,735.2 million • GAAP gross margin and non-GAAP gross margin of 45.2% and 45.3%, respectively • GAAP operating margin and non-GAAP operating margin of 22.4% and 27.5%, respectively • GAAP diluted earnings per share and non-G ...

The upcoming report from ON Semiconductor Corp. (ON) is expected to reveal quarterly earnings of $0.92 per share, indicating a decline of 30.8% compared to the year-ago period. Analysts forecast revenues of $1.73 billion, representing a decrease of 17.3% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior t ...

The latest trading session saw ON Semiconductor Corp. (ON) ending at $76.37, denoting a -0.65% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.Shares of the semiconductor components maker have appreciated by 6.81% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.Investors will be eagerly watching for the performan ...

Now might be a great time to bite the bullet and buy this semiconductor stock on a dip.Nvidia is a great company and a great stock, but it currently trades on slightly more than 50 times Wall Street's 2024 earnings estimates. That's fine for many investors willing to pay a premium for a high-quality growth stock, but for investors who are willing to take some near-term risk on board, ON Semiconductor (ON 3.54%) might be a better option. Here's why.Cyclicality matters for semiconductor stocksSemiconductors a ...