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 ...

The electric vehicle (EV) market has slowed in 2024 but is poised for explosive growth over the next decade. As the global economy shifts to greener and more sustainable energy solutions, finding the best EV stocks to buy will be a strategic move.One of the significant factors influencing the EV market is the interest rate environment. Lower interest rates can significantly impact the growth of the EV sector. They reduce the cost of borrowing for companies, making it much easier to invest in innovation.Addi ...

Core Viewpoint - ON Semiconductor is significantly investing in silicon carbide (SiC) manufacturing in Europe to meet the growing global demand for energy-efficient power semiconductors, particularly in sectors like electric vehicles, renewable energy, and AI data centers [1][2]. Group 1: Investment and Expansion - The company plans to invest up to $2 billion (44 billion CZK) in a vertically-integrated SiC manufacturing facility in the Czech Republic [1]. - This multi-year investment highlights ON's commitment to enhancing its capabilities in SiC manufacturing and contributing to the semiconductor value chain in Europe [1]. Group 2: Market Demand and Performance - ON Semiconductor's SiC solutions are increasingly popular in automotive and industrial applications, driving significant growth [2]. - In Q1 2024, over 50% of the substrates for ON's silicon carbide business came from internal production, indicating strong operational performance [2]. Group 3: Strategic Partnerships - ON Semiconductor has extended its silicon carbide partnership with BorgWarner, integrating EliteSiC technology for improved efficiency in EV traction inverters [3]. - Volkswagen is utilizing ON's EliteSiC technology in its electric vehicles, specifically in the 1200 V silicon carbide power module for traction inverters [3]. - A long-term supply agreement with Magna International aims to incorporate ON's EliteSiC solutions into Magna's eDrive systems, enhancing electric vehicle performance [3]. Group 4: Financial Outlook - Despite a broadening portfolio and strong partnerships, ON Semiconductor faces macroeconomic uncertainties, with its stock declining 17.3% year to date compared to the Zacks Computer & Technology sector's growth of 25.7% [4]. - The company expects Q2 2024 revenues to be between $1.68 billion and $1.78 billion, with a consensus estimate of $1.73 billion, reflecting a year-over-year decline of 17.32% [4]. - Non-GAAP earnings are projected to be between 86 cents and 98 cents per share, with a consensus estimate of 93 cents, indicating a year-over-year fall of 30.8% [4].

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about ON Semiconductor Corp. (ON) .ON Semiconductor Corp. currently has ...