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onsemi's (ON) Q4 Earnings & Revenues Top Estimates, Up Y/Y
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onsemi (ON - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $1.09 per share, outpacing the Zacks Consensus Estimate by 15.96%. The company had reported earnings of 35 cents per share in the year-ago quarter.
Revenues of $1.85 billion beat the Zacks Consensus Estimate by 3.07% and improved 27.6% on a year-over-year basis. The top line benefited from an increase in supply, and favorable mix and pricing across all end-markets served.
onsemi’s fourth-quarter results were mainly driven by a strong demand environment, particularly for power and sensing products in automotive and industrial end markets.
Shares closed at $62.26 on Feb 7, up 8.43% following the results. onsemi shares returned 56.4% in the past year, outperforming the Zacks Computer & Technology sector’s rise of 1.3%.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
Power Solutions Group or PSG revenues of $953.3 million (accounting for 51.6% of revenues) surged 33.1% year over year, courtesy of strength in automotive and industrial end markets.
Advanced Solutions Group or ASG revenues of $647.3 million (35.1% of revenues) increased 24% on a year-over-year basis, driven by robust automotive and computing end markets.
Intelligent Sensing Group or ISG revenues of $245.4 million (13.3% of revenues) improved 18% year over year, primarily driven by a strong automotive end market.
In terms of end markets, Automotive (34.7% of revenues) revenues were $641 million, up 30.2% year over year. Industrial (28.3% of revenues) end-market (includes military, aerospace and medical) revenues increased 42.2% year over year to $522 million. Other (37% of revenues) end-market revenues grew 16.4% year over year to $683 million.
Operating Details
Non-GAAP gross margin was 45.1% compared with the year-ago quarter’s 34.4%. The improvement was led by a favorable mix of higher-margin products, pricing and efficiency in manufacturing.
Non-GAAP operating expenses declined 3.6% year over year to $306.4 million.
Non-GAAP operating margin was 28.6%, significantly up from the year-ago quarter’s figure of 14.2%, courtesy of a higher revenue base and improvement in gross margin.
Balance Sheet & Cash Flow
As of Dec 31, 2021, onsemi had cash and cash equivalents of $1.35 billion compared with $1.39 billion on Oct 1, 2021.
Total debt (including current portion) as of Dec 31, 2021 was $3.07 billion, down from $3.11 billion reported on Oct 1, 2021.
Fourth-quarter 2021 cash flow from operations amounted to $626.6 million compared with the previous quarter’s reported figure of $448.9 million.
Capital expenditures for the quarter were $169.6 million, which equate to a capital intensity of 9%. onsemi is spending a major part of its capital expenditure toward enabling its 300-millimeter capability at the East Fishkill fab and the expansion of its silicon carbide capacity.
Free cash flow amounted to $457 million compared with $355.7 million in the previous quarter.
Guidance
For first-quarter 2022, onsemi expects revenues between $1.85 billion and $1.95 billion.
Non-GAAP gross margin is projected in the range of 45.5-47.5%.
Non-GAAP operating expenses are expected to be $298-$313 million.
Non-GAAP earnings are envisioned between 98 cents and $1.10 per share.
For 2022, onsemi expects gross margin in the range of 46.5-47.5%.
Image: Bigstock
onsemi's (ON) Q4 Earnings & Revenues Top Estimates, Up Y/Y
onsemi (ON - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $1.09 per share, outpacing the Zacks Consensus Estimate by 15.96%. The company had reported earnings of 35 cents per share in the year-ago quarter.
Revenues of $1.85 billion beat the Zacks Consensus Estimate by 3.07% and improved 27.6% on a year-over-year basis. The top line benefited from an increase in supply, and favorable mix and pricing across all end-markets served.
onsemi’s fourth-quarter results were mainly driven by a strong demand environment, particularly for power and sensing products in automotive and industrial end markets.
Shares closed at $62.26 on Feb 7, up 8.43% following the results. onsemi shares returned 56.4% in the past year, outperforming the Zacks Computer & Technology sector’s rise of 1.3%.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote
Top-Line Details
Power Solutions Group or PSG revenues of $953.3 million (accounting for 51.6% of revenues) surged 33.1% year over year, courtesy of strength in automotive and industrial end markets.
Advanced Solutions Group or ASG revenues of $647.3 million (35.1% of revenues) increased 24% on a year-over-year basis, driven by robust automotive and computing end markets.
Intelligent Sensing Group or ISG revenues of $245.4 million (13.3% of revenues) improved 18% year over year, primarily driven by a strong automotive end market.
In terms of end markets, Automotive (34.7% of revenues) revenues were $641 million, up 30.2% year over year. Industrial (28.3% of revenues) end-market (includes military, aerospace and medical) revenues increased 42.2% year over year to $522 million. Other (37% of revenues) end-market revenues grew 16.4% year over year to $683 million.
Operating Details
Non-GAAP gross margin was 45.1% compared with the year-ago quarter’s 34.4%. The improvement was led by a favorable mix of higher-margin products, pricing and efficiency in manufacturing.
Non-GAAP operating expenses declined 3.6% year over year to $306.4 million.
Non-GAAP operating margin was 28.6%, significantly up from the year-ago quarter’s figure of 14.2%, courtesy of a higher revenue base and improvement in gross margin.
Balance Sheet & Cash Flow
As of Dec 31, 2021, onsemi had cash and cash equivalents of $1.35 billion compared with $1.39 billion on Oct 1, 2021.
Total debt (including current portion) as of Dec 31, 2021 was $3.07 billion, down from $3.11 billion reported on Oct 1, 2021.
Fourth-quarter 2021 cash flow from operations amounted to $626.6 million compared with the previous quarter’s reported figure of $448.9 million.
Capital expenditures for the quarter were $169.6 million, which equate to a capital intensity of 9%. onsemi is spending a major part of its capital expenditure toward enabling its 300-millimeter capability at the East Fishkill fab and the expansion of its silicon carbide capacity.
Free cash flow amounted to $457 million compared with $355.7 million in the previous quarter.
Guidance
For first-quarter 2022, onsemi expects revenues between $1.85 billion and $1.95 billion.
Non-GAAP gross margin is projected in the range of 45.5-47.5%.
Non-GAAP operating expenses are expected to be $298-$313 million.
Non-GAAP earnings are envisioned between 98 cents and $1.10 per share.
For 2022, onsemi expects gross margin in the range of 46.5-47.5%.
Zacks Rank & Other Stocks to Consider
onsemi currently has a Zacks Rank #2 (Buy).
Airbnb (ABNB - Free Report) , Mandiant and Analog Devices (ADI - Free Report) are some stocks that investors can consider from the broader sector. While both Airbnb and Mandiant sport a Zacks Rank #1 (Strong Buy), Analog Devices carries the same rank as onsemi. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbnb’s shares have underperformed the sector in the past year, declining 21.2%.
Airbnb is set to report fourth-quarter 2021 results on Feb 15.
Mandiant’s shares have underperformed the Zacks Computer & Technology sector in the past year, declining 29.8%.
MNDT is set to report fourth-quarter 2021 on Feb 8.
Analog Devices’ shares have outperformed the Zacks Computer & Technology sector in the past year, rising 5%.
ADI is set to report first-quarter fiscal 2022 results on Feb 16.