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]