Financial Performance - Revenue for Q1 2025 was $1,445.7 million, a decrease of 16% sequentially and 22% year-over-year[2]. - Operating loss was $573.7 million, with a GAAP operating margin of (39.7)% compared to 23.7% in Q4 2024[2]. - Net loss attributable to ON Semiconductor Corporation was $486.1 million, resulting in a diluted loss per share of $(1.15)[3]. - Net income for the quarter was a loss of $485.2 million, compared to a profit of $379.8 million in the same quarter last year[20]. - GAAP net income for the quarter ended April 4, 2025, was $(486.1) million, compared to $379.9 million for the previous quarter[25]. - Non-GAAP net income attributable to ON Semiconductor Corporation for the quarter ended April 4, 2025, was $231.6 million, a decrease from $404.2 million in the previous quarter[25]. Margins and Profitability - GAAP gross margin was 20.3%, down from 45.2% in Q4 2024 and 45.8% in Q1 2024; non-GAAP gross margin was 40.0%[3]. - Non-GAAP gross profit was $578.5 million, down from $780.7 million, reflecting a decrease of 26% year-over-year[22]. - Non-GAAP operating income was $264.0 million, down from $459.4 million, indicating a decline of approximately 42.5% year-over-year[22]. - Total special items impacting GAAP net income for the quarter included $717.7 million in restructuring-related charges[25]. Cash Flow and Shareholder Returns - Free cash flow increased by 72% year-over-year to $455 million, representing 31% of revenue[3]. - The company returned 66% of its first quarter free cash flow to stockholders through share repurchases[1]. - Free cash flow for the quarter ended April 4, 2025, was $454.7 million, up from $422.4 million in the previous quarter[29]. - Cash flows from operating activities generated $602.3 million, an increase from $579.7 million in the previous year[20]. - Net cash provided by operating activities for the quarter ended April 4, 2025, was $602.3 million, an increase from $579.7 million in the previous quarter[29]. Assets and Liabilities - Total assets decreased to $13,253.9 million from $14,089.8 million, a decline of approximately 5.9% year-over-year[18]. - Total liabilities decreased to $5,205.0 million from $5,275.3 million, a reduction of approximately 1.3% year-over-year[18]. - Ending cash, cash equivalents, and restricted cash increased to $2,765.2 million from $2,693.4 million, marking a rise of 2.7%[20]. Future Projections - Projected revenue for Q2 2025 is expected to be between $1,400 million and $1,500 million[6]. - Projected GAAP gross margin for Q2 2025 is estimated to be between 36.4% and 38.4%[6]. - The company expects to maintain a normalized non-GAAP effective tax rate of 16% through 2025[36]. Strategic Focus - The company continues to see strong design win momentum with major global customers across all end-markets[1]. - onsemi is focused on long-term value creation while investing in future growth opportunities[1]. Stock Repurchase and Compensation - The company repurchased common stock worth $300.1 million during the quarter, compared to $204.1 million in the same quarter last year[20]. - Share-based compensation totaled $33.9 million for the quarter ended April 4, 2025, compared to $38.1 million in the previous quarter[28].

Group 1 - ON Semiconductor Corporation is set to release its first-quarter earnings results on May 5, with analysts expecting earnings of 50 cents per share, a decrease from $1.08 per share in the same period last year [1] - The projected quarterly revenue for ON Semiconductor is $1.4 billion, down from $1.86 billion a year earlier [1] - ON Semiconductor has ceased its acquisition efforts for Allegro MicroSystems, withdrawing its cash proposal of $35.10 per share due to the lack of an actionable path forward [2] Group 2 - ON Semiconductor shares increased by 5.8%, closing at $41.91 on the last trading day [2] - Analysts have provided various ratings and price target adjustments for ON Semiconductor, with Stifel lowering its target from $52 to $42, Citigroup from $52 to $40, Keybanc from $60 to $55, Mizuho from $71 to $62, and Needham maintaining a target of $57 [8]

Core Viewpoint - On Semiconductor (ON) is expected to report a significant decline in revenues and earnings for the first quarter of 2025, influenced by various market challenges, particularly in the automotive sector [1][3][4]. Revenue and Earnings Expectations - ON anticipates revenues between $1.35 billion and $1.45 billion for Q1 2025, with earnings projected to be in the range of 45-55 cents per share [1]. - The Zacks Consensus Estimate for revenues is set at $1.41 billion, indicating a decline of 12.56% from the previous year's figure [2]. Performance Influencing Factors - The company's performance is likely to be impacted by volatility in the automotive sector, geopolitical uncertainties, supply-chain disruptions, and a slower-than-expected adoption rate of electric vehicles (EVs) [3]. - A significant decline in automotive revenues is anticipated, with a sequential drop of 25% or more, primarily due to weakening demand in China [4]. - Industrial revenues also faced a decline of 5% sequentially in the previous quarter, attributed to inventory digestion and weakness in traditional markets [5]. Strategic Focus - ON's emphasis on silicon carbide (SiC) technology is a key growth driver, with expectations for revenue growth in SiC JFET and SiC MOSFET products through 2025 [6]. - The recent acquisition of Qorvo's SiC JFET business is expected to enhance ON's strategy in providing comprehensive power solutions across various markets [6]. Earnings Prediction Model - The Zacks model indicates that ON currently has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell), suggesting low odds of an earnings beat [7].

Analysts on Wall Street project that ON Semiconductor Corp. (ON) will announce quarterly earnings of $0.51 per share in its forthcoming report, representing a decline of 52.8% year over year. Revenues are projected to reach $1.41 billion, declining 24.6% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Be ...

Market Reaction - Semiconductor stocks experienced significant declines, with Wolfspeed dropping 14.6%, NXP Semiconductors down 6.6%, and Rambus falling 4.7% [1] - Other notable declines include ON Semiconductor at 2.4%, Supermicro at 2.3%, and Micron Technology at 1.67% [1] Government Policy Impact - The Trump administration is reportedly working on modifying a rule from the Biden era that restricts most countries from accessing U.S.-designed AI chips [1] - The proposed changes may involve replacing the current tiered system with intergovernmental agreements [1]

Group 1 - Khaveen Investments is a global investment advisory firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm offers comprehensive services including market and security research, business valuation, and wealth management [1] - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio across various asset classes, geographies, sectors, and industries [1] Group 2 - The investment approach integrates top-down and bottom-up analysis, blending global macro, fundamental, and quantitative strategies [1] - Core expertise lies in disruptive technologies such as Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Group 1: Market Overview - The S&P 500 is down about 6% year-to-date, with significant declines from mid-February highs [1] - Many stocks have underperformed due to President Trump's tariffs affecting nearly every sector [1] Group 2: Deckers Outdoor - Deckers Outdoor is the worst-performing stock in the S&P 500, down approximately 46% this year [2] - Concerns over future growth and tariffs have negatively impacted investor sentiment [3] - Despite struggles, 12 out of 17 analysts recommend buying the stock, with an average price target suggesting a 70% upside [4][5] Group 3: Teradyne - Teradyne's stock is down 39%, primarily due to slowing demand for semiconductors and AI solutions [7][8] - The company cut its second-quarter guidance, indicating potential revenue declines of up to 10% [9] - Analysts remain optimistic, with 13 out of 17 rating the stock a buy and an average price target implying 48% upside [10][11] Group 4: ON Semiconductor - ON Semiconductor is down 38%, facing challenges in revenue growth due to high valuations and demand concerns in the semiconductor sector [12][13] - The company abandoned a $6.9 billion acquisition of Allegro Microsystems due to regulatory challenges [14] - Analysts are mixed, with 15 out of 24 recommending a buy, but concerns about revenue visibility have led to a downgrade from buy to neutral by B. Riley [15][16][17]

Core Viewpoint - ON Semiconductor Corp. is experiencing a decline in stock performance and is expected to report lower earnings and revenue in the upcoming earnings disclosure scheduled for May 5, 2025 [3][4]. Company Performance - The stock price of ON Semiconductor Corp. closed at $39.63, reflecting a decrease of 0.84% from the previous trading day, underperforming compared to the S&P 500's gain of 0.74% [1]. - Over the past month, shares of ON Semiconductor have lost 8.68%, which is worse than the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% [2]. Earnings Estimates - Analysts expect ON Semiconductor to report an EPS of $0.51, which represents a decline of 52.78% from the same quarter last year [3]. - Revenue is projected to be $1.41 billion, indicating a 24.56% decrease compared to the corresponding quarter of the previous year [3]. - For the full year, earnings are estimated at $2.47 per share and revenue at $5.9 billion, reflecting declines of 37.94% and 16.68%, respectively, from the prior year [4]. Analyst Sentiment - Recent changes in analyst estimates for ON Semiconductor indicate shifting business dynamics, with upward revisions suggesting positive sentiment towards the company's operations [5]. - The Zacks Rank for ON Semiconductor is currently 4 (Sell), with the consensus EPS estimate moving 0.6% lower over the last 30 days [7]. Valuation Metrics - ON Semiconductor has a Forward P/E ratio of 16.17, which is lower than the industry's average Forward P/E of 27.45, suggesting a valuation discount [8]. - The company has a PEG ratio of 12.63, significantly higher than the average PEG ratio of 1.91 for Semiconductor - Analog and Mixed stocks [9]. Industry Context - The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [10].

Market Performance - Nasdaq 100 index increased by over 2%, with Microchip Technology rising by 9.6% and ON Semiconductor by 7.5% [1] - Other notable gainers include Marvell Technology, Analog Devices, Texas Instruments, Atlassian, Lam Research, NXP Semiconductors, AppLovin, Arm Holdings, and others, with increases up to 6.96% [1] - S&P 500 index rose by 1.4%, Nasdaq by 1.98%, and Philadelphia Semiconductor index by 4.6% [1] Individual Stock Performance - Microchip Technology Inc price at $45.96, up by $4.03 [2] - ON Semiconductor Corp price at $39.36, up by $2.73 [2] - Marvell Technology Inc price at $57.51, up by $3.74 [2] - Analog Devices Inc price at $195.61, up by $12.49 [2] - Texas Instruments Inc price at $162.24, up by $10.09 [2] - Atlassian Corp price at $221.16, up by $12.89 [2] - Lam Research Corp price at $70.82, up by $4.09 [2] - NXP Semiconductors NV price at $191.20, up by $10.33 [2] - AppLovin Corp price at $266.10, up by $13.75 [2] - Arm Holdings PLC price at $110.55, up by $5.39 [2] - Other companies like MongoDB, Broadcom, CrowdStrike, and Zscaler also showed significant gains [2]

Group 1: Market Overview - The S&P 500 Index is down approximately 14% from its 52-week high, while the Invesco PHLX Semiconductor ETF is down around 35% from its highs [1] - Lesser-known chip stocks Semtech and Onsemi have experienced declines of more than 50% from their 52-week highs, presenting potential long-term growth opportunities [2] Group 2: Semtech Analysis - Semtech's stock has dropped 69% from its 52-week high, despite a significant improvement in its financial position [2] - In the most recent quarter, Semtech's revenue rose 30% year-over-year, with adjusted operating margin nearly doubling to nearly 20% [3] - The infrastructure segment, which includes data center customers, saw a 75% year-over-year growth [3] - Semtech's LoRa devices in the Industrial market experienced a revenue increase of 205% from the prior year quarter, indicating strong customer resonance [4] - The current price target for Semtech is $57.33, suggesting a potential upside of 112.42% [6] - Morgan Stanley analysts have set a price target of $30 for Semtech, indicating a 22% upside over the next 12 months [7] Group 3: Onsemi Analysis - Onsemi's stock is down nearly 56% from its 52-week high, primarily due to negative revenue growth for six consecutive quarters [8] - Despite the downturn, Onsemi maintains strong profitability with an adjusted gross profit margin of around 45% and an adjusted operating margin of more than 25% [9] - The company targets revenue growth of 10% to 12% through 2027 and aims for a 40% operating margin [10] - Onsemi is well-positioned to benefit from megatrends such as increasing electric vehicle ownership and has a strong focus on silicon carbide (SiC)-based chips [10][11] - The 12-month stock price forecast for Onsemi is $63.52, indicating a potential upside of 73.08% [12] - Analysts remain cautiously optimistic about Onsemi, with a mix of Buy and Hold ratings [13]