ON Semiconductor Corp (NASDAQ: ON) shares reported a fiscal third-quarter 2024 revenue decline of 19.2% year-over-year to $1.76 billion, beating analysts’ consensus estimate of $1.75 billion.
Adjusted earnings per share of $0.99 beat analysts’ consensus estimate of $0.97.
Power Solutions Group (PSG) revenue fell 23% year over year to $829.4 million, Analog and Mixed-Signal Group (AMG) fell 16% year over year to $653.7 million, and Intelligent Sensing Group (ISG ) fell 15% year over year to $278.8 million.
Also read: ON Semiconductor is diversifying its supply chain and pursuing savings with new manufacturing investments
Adjusted gross margin fell 180 basis points to 45.5%, and adjusted operating margin fell 440 basis points to 28.2%, implying pricing pressure in the semiconductor industry.
ON Semiconductor generated $293.6 million in free cash flow and had $2.77 billion in cash and equivalents as of September 27, 2024.
CEO Hassane El-Khoury said: “As power demand continues to rise in our key markets and the need for greater efficiency becomes paramount, we are investing to win across the entire energy spectrum to ensure onsemi is best positioned to gain market share in the automotive sector. industrial and AI data center.”
Outlook: ON Semiconductor expects fourth-quarter adjusted revenue of $1.71 billion – $1.80 billion, versus the consensus of $1.75 billion.
The company expects adjusted earnings per share of $0.92 to $1.04, versus the consensus of $0.97.
ON Semiconductor shares are down 13% this year. At least three Wall Street firms cut their price targets for the stock in July, including two rating downgrades. The company’s revenue and margins took a hit in the three quarters of 2024.
Price promotion: ON shares are up 2.71% at $73.18 premarket at last check on Monday.
Also read:
UNLOCKED: 5 NEW ACTS EVERY WEEK. Click now to receive the best trading ideas dailyplus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Want the latest stock analysis from Benzinga?
This article on Semiconductor’s Third Quarter Earnings: Beating Revenue and Earnings Per Share Amid 19% Revenue Decline and Margin Pressure, Eyes Growth in Automotive & AI Markets originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
