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What's in the Offing for ON Semiconductor's (ON) Q4 Earnings?
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ON Semiconductor Corporation (ON - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 1.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 28 cents, indicating a decline of 6.7% year over year.
The consensus estimate for revenues is pegged at $1.36 billion, which suggests a deterioration of 3.1% from the year-ago quarter’s reported figure. ON Semi forecasts revenues in the range of $1.3-$1.4 billion (mid-point $1.35 billion) for the fourth quarter of 2020.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed the same in the remaining quarters. The company has a trailing four-quarter positive earnings surprise of 124.92%, on average.
ON Semiconductor Corporation Price and EPS Surprise
Solid momentum in image sensors amid consistent growth in advanced driver-assistance systems (“ADAS”) and vehicle electrification domains, driven by uptick in global automotive production are anticipated to have supported the company’s automotive segment in the to-be-reported quarter.
Further, ON Semi is also witnessing increasing demand for its LiDAR solutions along with ultrasonic, lighting, and actuator offerings. This is likely to have positively impacted the top line in the fourth quarter. Moreover, strong traction for silicon carbide (SiC) and silicon power products driven by growth in electric vehicles (EVs) may have acted as a tailwind.
Investments in the 300mm fab in east Fishkill is expected to have aided the company cater to rising demands, which in turn, might have contributed to the top line in the fourth quarter.
Though global macroeconomic activity has started to gather steam, it is yet to reach the pre-COVID-19 levels. Also, many countries are undertaking re-imposition of shelter-in-place guidelines due to another coronavirus wave, which might have negatively impacted production across automotive vertical.
This, in turn might have weighed on the top line growth in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for revenues for Automotive end markets is pegged at $440 million that suggests a decline of around 4.8% from the year-ago quarter’s reported figure.
Further, the company’s SiC modules are witnessing strong uptake in the solar power related applications, which is likely to have aided segmental performance of Industrial end-market.
Growing influence of ON Semi’s products in medical domain, primarily in hearing and personal diagnostics markets holds promise. Also, with elective medical procedures gaining pace after being on hold due to COVID-19 crisis, are expected to have positively impacted performance in the fourth quarter.
The Zacks Consensus Estimate is currently pegged at $339 million for the Industrial/Medical/Mil-Aero end-markets, which indicates a decline of 1.5% year over year.
Accelerated deployment of 5G bodes well for the company’s 5G Infrastructure business, which is likely to have supported Communications end-market performance in the fourth quarter. However, weakness in smartphone business might have acted as a headwind. The Zacks Consensus Estimate for revenues is currently pegged at $246 million for the Communications end-markets, indicating a fall of 14.9% year over year.
Continued strength in client and server business is anticipated to have added to the top line in the Computing end-market segment. The Zacks Consensus Estimate for revenues is currently pegged at $171 million for the Computing end-markets, which indicates an increase of 11.8% year over year.
Primarily sluggishness in consumer electronics market due to the ongoing pandemic is likely to have negatively impacted Consumer end market revenues in the to-be-reported quarter. The Zacks Consensus Estimate is currently pegged at $147 million, which indicates a decline of 3.9% year over year.
Also, rising costs related to COVID-19 are expected to have put pressure on margins in the fourth quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for ON Semiconductor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ON Semiconductor has a Zacks Rank #3 and an Earnings ESP of +5.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are other stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.42% and currently carries a Zacks Rank of 2.
Skyworks (SWKS - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What's in the Offing for ON Semiconductor's (ON) Q4 Earnings?
ON Semiconductor Corporation (ON - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 1.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 28 cents, indicating a decline of 6.7% year over year.
The consensus estimate for revenues is pegged at $1.36 billion, which suggests a deterioration of 3.1% from the year-ago quarter’s reported figure. ON Semi forecasts revenues in the range of $1.3-$1.4 billion (mid-point $1.35 billion) for the fourth quarter of 2020.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed the same in the remaining quarters. The company has a trailing four-quarter positive earnings surprise of 124.92%, on average.
ON Semiconductor Corporation Price and EPS Surprise
ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote
Factors Likely to Influence Q4 Results
Solid momentum in image sensors amid consistent growth in advanced driver-assistance systems (“ADAS”) and vehicle electrification domains, driven by uptick in global automotive production are anticipated to have supported the company’s automotive segment in the to-be-reported quarter.
Further, ON Semi is also witnessing increasing demand for its LiDAR solutions along with ultrasonic, lighting, and actuator offerings. This is likely to have positively impacted the top line in the fourth quarter. Moreover, strong traction for silicon carbide (SiC) and silicon power products driven by growth in electric vehicles (EVs) may have acted as a tailwind.
Investments in the 300mm fab in east Fishkill is expected to have aided the company cater to rising demands, which in turn, might have contributed to the top line in the fourth quarter.
Though global macroeconomic activity has started to gather steam, it is yet to reach the pre-COVID-19 levels. Also, many countries are undertaking re-imposition of shelter-in-place guidelines due to another coronavirus wave, which might have negatively impacted production across automotive vertical.
This, in turn might have weighed on the top line growth in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for revenues for Automotive end markets is pegged at $440 million that suggests a decline of around 4.8% from the year-ago quarter’s reported figure.
Further, the company’s SiC modules are witnessing strong uptake in the solar power related applications, which is likely to have aided segmental performance of Industrial end-market.
Growing influence of ON Semi’s products in medical domain, primarily in hearing and personal diagnostics markets holds promise. Also, with elective medical procedures gaining pace after being on hold due to COVID-19 crisis, are expected to have positively impacted performance in the fourth quarter.
The Zacks Consensus Estimate is currently pegged at $339 million for the Industrial/Medical/Mil-Aero end-markets, which indicates a decline of 1.5% year over year.
Accelerated deployment of 5G bodes well for the company’s 5G Infrastructure business, which is likely to have supported Communications end-market performance in the fourth quarter. However, weakness in smartphone business might have acted as a headwind. The Zacks Consensus Estimate for revenues is currently pegged at $246 million for the Communications end-markets, indicating a fall of 14.9% year over year.
Continued strength in client and server business is anticipated to have added to the top line in the Computing end-market segment. The Zacks Consensus Estimate for revenues is currently pegged at $171 million for the Computing end-markets, which indicates an increase of 11.8% year over year.
Primarily sluggishness in consumer electronics market due to the ongoing pandemic is likely to have negatively impacted Consumer end market revenues in the to-be-reported quarter. The Zacks Consensus Estimate is currently pegged at $147 million, which indicates a decline of 3.9% year over year.
Also, rising costs related to COVID-19 are expected to have put pressure on margins in the fourth quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for ON Semiconductor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ON Semiconductor has a Zacks Rank #3 and an Earnings ESP of +5.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are other stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Qorvo (QRVO - Free Report) has an Earnings ESP of +0.78% and holds a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.42% and currently carries a Zacks Rank of 2.
Skyworks (SWKS - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>