It has been about a month since the last earnings report for ON Semiconductor Corp. (ON) . 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 ...

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ON Semiconductor Corp. (ON) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this semiconductor components maker have returned -6.8%, compared to the Zacks S&P 500 composite's -5.9% change. During this period, the Zacks Semiconductor - Analog and Mixed industry, which ON Semiconductor Corp. falls in, has lost 12.1%. The key question now is: What could be t ...

It's usually a good idea to buy semiconductor stocks when their sales are about to hit a cyclical bottom.The market warmed to ON Semiconductor's (ON -5.49%) second-quarter earnings report, and the stock has now significantly outperformed Nvidia over the last month, with a 14.2% increase compared to a 5.4% decline for the stock market darling (as of this writing). The question is why and whether it can continue.A cyclical stock to buyON Semiconductor services two highly cyclical end markets, namely automotiv ...

PHILADELPHIA, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Keiretsu Forum Mid-Atlantic, South-East, and Texas regions proudly announce the latest liquidity event for investor members. SWIR Vision Systems, an early-stage company specializing in short-wave infrared (SWIR) technology, has been acquired by onsemi. The move was announced in early July by onsemi. This acquisition marks a significant milestone for Keiretsu Forum members and the investment community. SWIR Vision Systems joined the Keiretsu Forum portfolio aft ...

The chipmaker's Q2 results show it's still struggling to grow, but ON stock is worth watching because the company is one of the largest producers of silicon carbide power chips, which are increasingly being used in electric vehicles (EV) and chargers.Shares of ON Semiconductor (ON 11.54%), a chipmaker focused on power and sensing technologies for the auto and industrial markets, surged 11.5% on Monday.The catalyst for the gain was the company's release of a better-than-expected second-quarter report. Revenu ...

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]