Core Insights - ON Semiconductor reported first-quarter 2025 non-GAAP earnings of 55 cents per share, exceeding the Zacks Consensus Estimate by 7.8% but showing a decline of 49.1% year over year. Revenues of $1.45 billion fell short of the Zacks Consensus Estimate by 2.9% and decreased by 22.4% year over year [1]. Revenue Breakdown - Automotive segment, which constitutes 52.7% of revenues, generated $761.9 million, down 25.1% year over year [2]. - Industrial segment, accounting for 27.7% of revenues, saw revenues decline 16% year over year to $400 million [2]. - Other segments, making up 19.6% of revenues, reported a revenue drop of 23.2% year over year to $283.8 million [2]. Segment Performance - Power Solutions Group revenues were $645.1 million, contributing 44.6% to total revenues, and fell 26.2% year over year [3]. - Analog & Mixed Group revenues reached $566.4 million, representing 39.2% of revenues, declining 18.7% year over year [3]. - Intelligent Sensing Group revenues totaled $234.2 million, accounting for 16.2% of revenues, and decreased by 19.7% year over year [3]. Margin and Expenses - Non-GAAP gross margin contracted by 590 basis points year over year to 40% [4]. - Non-GAAP operating expenses increased by 0.1% year over year to $314.5 million, with operating expenses as a percentage of revenues rising by 490 basis points year over year [4]. - Non-GAAP operating margin was reported at 18.3%, down from 29% in the same quarter last year [4]. Financial Position - As of April 4, 2025, ON Semiconductor had cash and cash equivalents of $3.01 billion, up from $2.69 billion as of December 31, 2024 [5]. - Total debt remained unchanged at $3.35 billion as of April 4, 2025 [5]. - Cash flow from operations for the first quarter of 2025 was $602.3 million, compared to $579.7 million in the previous quarter [5]. Free Cash Flow - Free cash flow for the first quarter amounted to $454.7 million, an increase from $264.8 million in the previous quarter [6]. Q2 Guidance - For Q2 2025, ON Semiconductor expects revenues between $1.40 billion and $1.50 billion [7]. - Projected non-GAAP gross margin is expected to be in the range of 36.5-38.5% [7]. - Non-GAAP operating expenses are anticipated to be between $285 million and $300 million, with earnings projected between 48 cents and 58 cents per share [7]. Zacks Rank - ON Semiconductor currently holds a Zacks Rank 4 (Sell) [8]. - Other stocks in the sector with better rankings include Affirm (Zacks Rank 1), Compass (Zacks Rank 2), and StoneCo (Zacks Rank 1) [8].

Core Insights - ON Semiconductor Corp. reported a revenue of $1.45 billion for Q1 2025, reflecting a year-over-year decline of 22.4% and an EPS of $0.55 compared to $1.08 a year ago, with a revenue surprise of +2.88% over estimates [1] - The company’s stock has returned +24.4% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change, but currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Revenue Breakdown - Revenue from the Market- Others segment was $283.80 million, exceeding the estimated $275.77 million, but down 23.2% year-over-year [4] - Revenue from the Market- Industrial segment was $400 million, surpassing the average estimate of $387.81 million, yet reflecting a year-over-year decline of 16% [4] - Revenue from the Market- Automotive segment was $761.90 million, below the estimated $813.98 million, with a year-over-year decrease of 25.1% [4] - Revenue from the Product- Intelligent Sensing Group was $234.20 million, compared to the estimated $264.42 million, marking a year-over-year decline of 19.7% [4] - Revenue from the Product- Analog & Mixed-Signal Group was $566.40 million, falling short of the estimated $615.92 million [4] - Revenue from the Product- Power Solutions Group was $645.10 million, compared to the estimated $786.05 million [4]

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 ...