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ON Semiconductor (ON) to Report Q2 Earnings: What's in Store?

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ON Semiconductor (ON - Free Report) is set to release second-quarter 2021 results on Aug 2.

For the quarter, the company expects revenues between $1.57 billion and $1.67 billion. Earnings are expected in the range of 44-54 cents per share.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 49 cents per share, unchanged over the past 30 days and indicating a surge of 308.3% from the figure reported in the year-ago quarter.

The consensus estimate for revenues is pegged at $1.62 billion, which suggests an improvement of 33.7% from the year-ago quarter’s reported figure.

ON Semiconductor’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 142.5%, on average.
 

 

Let’s see how things have shaped up for ON Semiconductor prior to this announcement.

Factors to Consider

Strong automotive and industrial end-markets are expected to have contributed to ON Semiconductor’s second-quarter top-line growth.

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 driven automotive segment revenues.

Growing traction in silicon carbide (SiC) and IGBT (or Insulated-Gate Bipolar Transistor) products for electric vehicles is expected to have benefited performance.

The Zacks Consensus Estimate for revenues for Automotive end market is pegged at $565 million, which suggests year-over-year growth 72.8%.

The Industrial market is expected to have benefited from strong demand for power modules. The Zacks Consensus Estimate is currently pegged at $415 million for the Industrial/Medical/Mil-Aero end-markets, which suggests an improvement of 19.3% year over year.

Communications end-market revenues are anticipated to have been driven by rapid deployment of 5G. However, weakness in smartphone business might have acted as a headwind. The Zacks Consensus Estimate for revenues is currently pegged at $242 million for the Communications end-markets, indicating a fall of 5.1% 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 $228 million for the Computing end-markets, which indicates an increase of 44.3% year over year.

What Our Model Says

Per the Zacks model, 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. But that’s not the case here.

ON Semiconductor has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank #2.

Bruker (BRKR - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #2.

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