onsemi (ON - Free Report) reported third-quarter 2023 non-GAAP earnings of $1.39 per share, outpacing the Zacks Consensus Estimate by 3% but declining 4.1% year over year.
Revenues of $2.18 billion beat the Zacks Consensus Estimate by 1.9% but declined 0.5% on a year-over-year basis.
The company’s shares have gained 36% year to date, outperforming the Zacks Computer & Technology sector’s increase of 25.2%.
Top-Line Details
Power Solutions Group revenues of $1.23 billion (accounting for 56.4% of revenues) increased 10.2% year over year. The figure beat the Zacks Consensus Estimate by 11.55%.
Advanced Solutions Group revenues of $621.6 million (28.5% of revenues) decreased 15.3% on a year-over-year basis. The figure lagged the consensus mark by 9.42%.
Intelligent Sensing Group revenues of $328.6 million (15.1% of revenues) fell 4% year over year. However, the figure missed the consensus mark by 7.14%.
In terms of end markets, Automotive (53.1% of revenues) revenues were $1.16 billion, up 32.5% year over year. The figure also beat the Zacks Consensus Estimate by 4.71%.
Industrial (28.2% of revenues) end-market (including military, aerospace and medical) revenues increased 0.4% year over year to $615.8 million. The figure lagged the consensus mark by 1.67%.
Other (18.7% of revenues) end-market revenues declined 42.3% year over year to $407.1 million. The figure lagged the consensus mark by 2.34%.
Operating Details
Non-GAAP gross margin contracted 200 basis points (bps) year over year to 47.3%.
Non-GAAP operating expenses increased 5.9% year over year to $322.2 million.
Non-GAAP operating margin was 32.6%, down 290 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Sep 29, 2023, onsemi had cash and cash equivalents of $2.68 billion compared with $2.62 billion as of Jun 30, 2023.
Total debt (including the current portion), as of Sep 29, 2023, was $3.45 billion, unchanged sequentially.
Third-quarter 2023 cash flow from operations amounted to $566.6 million compared with the previous quarter’s reported figure of $390.8 million.
Free cash flow amounted to $133.6 million compared with free cash outflow of $39.8 million in the previous quarter.
Guidance
For the fourth quarter of 2023, onsemi expects revenues between $1.95 billion and $2.05 billion.
Non-GAAP gross margin is projected in the range of 45.5-47.5%.
Non-GAAP operating expenses are expected in the range of $300-$315 million.
Non-GAAP earnings are envisioned between $1.13 per share and $1.27 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
eGain (EGAN - Free Report) , GoDaddy (GDDY - Free Report) and Itron (ITRI - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
eGain shares have declined 27.8% year to date. EGAN is set to report its first-quarter fiscal 2024 results on Nov 2.
GoDaddy shares have declined 10.9% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Itron shares have returned 17% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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onsemi (ON - Free Report) reported third-quarter 2023 non-GAAP earnings of $1.39 per share, outpacing the Zacks Consensus Estimate by 3% but declining 4.1% year over year.
Revenues of $2.18 billion beat the Zacks Consensus Estimate by 1.9% but declined 0.5% on a year-over-year basis.
The company’s shares have gained 36% year to date, outperforming the Zacks Computer & Technology sector’s increase of 25.2%.
Top-Line Details
Power Solutions Group revenues of $1.23 billion (accounting for 56.4% of revenues) increased 10.2% year over year. The figure beat the Zacks Consensus Estimate by 11.55%.
Advanced Solutions Group revenues of $621.6 million (28.5% of revenues) decreased 15.3% on a year-over-year basis. The figure lagged the consensus mark by 9.42%.
Intelligent Sensing Group revenues of $328.6 million (15.1% of revenues) fell 4% year over year. However, the figure missed the consensus mark by 7.14%.
In terms of end markets, Automotive (53.1% of revenues) revenues were $1.16 billion, up 32.5% year over year. The figure also beat the Zacks Consensus Estimate by 4.71%.
Industrial (28.2% of revenues) end-market (including military, aerospace and medical) revenues increased 0.4% year over year to $615.8 million. The figure lagged the consensus mark by 1.67%.
Other (18.7% of revenues) end-market revenues declined 42.3% year over year to $407.1 million. The figure lagged the consensus mark by 2.34%.
Operating Details
Non-GAAP gross margin contracted 200 basis points (bps) year over year to 47.3%.
Non-GAAP operating expenses increased 5.9% year over year to $322.2 million.
Non-GAAP operating margin was 32.6%, down 290 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Sep 29, 2023, onsemi had cash and cash equivalents of $2.68 billion compared with $2.62 billion as of Jun 30, 2023.
Total debt (including the current portion), as of Sep 29, 2023, was $3.45 billion, unchanged sequentially.
Third-quarter 2023 cash flow from operations amounted to $566.6 million compared with the previous quarter’s reported figure of $390.8 million.
Free cash flow amounted to $133.6 million compared with free cash outflow of $39.8 million in the previous quarter.
Guidance
For the fourth quarter of 2023, onsemi expects revenues between $1.95 billion and $2.05 billion.
Non-GAAP gross margin is projected in the range of 45.5-47.5%.
Non-GAAP operating expenses are expected in the range of $300-$315 million.
Non-GAAP earnings are envisioned between $1.13 per share and $1.27 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
eGain (EGAN - Free Report) , GoDaddy (GDDY - Free Report) and Itron (ITRI - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
eGain shares have declined 27.8% year to date. EGAN is set to report its first-quarter fiscal 2024 results on Nov 2.
GoDaddy shares have declined 10.9% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Itron shares have returned 17% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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