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onsemi (ON) to Report Q4 Earnings: What's in the Cards?
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onsemi (ON - Free Report) is set to release fourth-quarter 2021 results on Feb 7.
For the quarter, onsemi expects revenues between $1.74 billion and $1.84 billion. Earnings are expected between 89 cents and $1.01 per share.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 94 cents per share, unchanged in the past 30 days. The projection indicates a surge of 168.57% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $1.79 billion, suggesting an improvement of 23.84% from the year-ago quarter’s reported figure.
onsemi’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 18.52%, on average.
Let’s see how things have shaped up for onsemi prior to this announcement.
Factors to Consider
onsemi is benefiting from broad-based strength across industrial, computing, consumer and automotive end-markets. The company continues to gain traction among electric vehicle manufacturers. It is witnessing a solid demand environment, particularly for its power and sensing products, which it expects to continue in the near term.
The Zacks Consensus Estimate for revenues for the Automotive end market is pegged at $607 million, suggesting year-over-year growth of 23.6%.
The Industrial market is expected to have benefited from strong demand for power modules. The Zacks Consensus Estimate is currently pegged at $498 million for the Industrial/Medical/Mil-Aero end markets, suggesting an improvement of 43.1% year over year.
In the to-be-reported quarter, onsemi completed the acquisition of GT Advanced Technologies, a producer of silicon carbide (SiC). The acquisition, which enhances onsemi’s ability to secure and grow the supply of SiC, is anticipated to have driven the company’s top line.
Communications end-market revenues are anticipated to have been driven by the rapid deployment of 5G. However, weakness in the smartphone business might have acted as a headwind. The Zacks Consensus Estimate for revenues is currently pegged at $262 million for the Communications end-markets, indicating a decline of 0.76% 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 $260 million for the Computing end markets, which indicates an increase of 27.7% 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.
onsemi has an Earnings ESP of 0.00% and carries a Zacks Rank #2 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:
FIVN shares have underperformed the Zacks Computer & Technology sector in the past year. FIVN has declined 27% compared with the sector’s rise of 36.9%. The company is set to report fourth-quarter 2021 on Feb 23, 2022.
CDW (CDW - Free Report) has an Earnings ESP of +2.63% and carries a Zacks Rank of 2 at present.
CDW returned 29.8% in the past year. CDW is set to report fourth-quarter 2021 results on Feb 9, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #2.
Fastly’s shares are down 75.5% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Image: Shutterstock
onsemi (ON) to Report Q4 Earnings: What's in the Cards?
onsemi (ON - Free Report) is set to release fourth-quarter 2021 results on Feb 7.
For the quarter, onsemi expects revenues between $1.74 billion and $1.84 billion. Earnings are expected between 89 cents and $1.01 per share.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 94 cents per share, unchanged in the past 30 days. The projection indicates a surge of 168.57% from the figure reported in the year-ago quarter.
The consensus estimate for revenues is pegged at $1.79 billion, suggesting an improvement of 23.84% from the year-ago quarter’s reported figure.
onsemi’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 18.52%, on average.
Let’s see how things have shaped up for onsemi prior to this announcement.
Factors to Consider
onsemi is benefiting from broad-based strength across industrial, computing, consumer and automotive end-markets. The company continues to gain traction among electric vehicle manufacturers. It is witnessing a solid demand environment, particularly for its power and sensing products, which it expects to continue in the near term.
The Zacks Consensus Estimate for revenues for the Automotive end market is pegged at $607 million, suggesting year-over-year growth of 23.6%.
The Industrial market is expected to have benefited from strong demand for power modules. The Zacks Consensus Estimate is currently pegged at $498 million for the Industrial/Medical/Mil-Aero end markets, suggesting an improvement of 43.1% year over year.
In the to-be-reported quarter, onsemi completed the acquisition of GT Advanced Technologies, a producer of silicon carbide (SiC). The acquisition, which enhances onsemi’s ability to secure and grow the supply of SiC, is anticipated to have driven the company’s top line.
Communications end-market revenues are anticipated to have been driven by the rapid deployment of 5G. However, weakness in the smartphone business might have acted as a headwind. The Zacks Consensus Estimate for revenues is currently pegged at $262 million for the Communications end-markets, indicating a decline of 0.76% 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 $260 million for the Computing end markets, which indicates an increase of 27.7% 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.
onsemi has an Earnings ESP of 0.00% and carries a Zacks Rank #2 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:
Five9 (FIVN - Free Report) has an Earnings ESP of +7.01% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
FIVN shares have underperformed the Zacks Computer & Technology sector in the past year. FIVN has declined 27% compared with the sector’s rise of 36.9%. The company is set to report fourth-quarter 2021 on Feb 23, 2022.
CDW (CDW - Free Report) has an Earnings ESP of +2.63% and carries a Zacks Rank of 2 at present.
CDW returned 29.8% in the past year. CDW is set to report fourth-quarter 2021 results on Feb 9, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #2.
Fastly’s shares are down 75.5% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.