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onsemi's (ON) Q1 Earnings & Revenues Top Estimates, Up Y/Y
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onsemi (ON - Free Report) reported first-quarter 2022 non-GAAP earnings of $1.22 per share, outpacing the Zacks Consensus Estimate by 16.19%. The company had reported earnings of 35 cents per share in the year-ago quarter.
Revenues of $1.95 billion beat the Zacks Consensus Estimate by 1.99% and improved 31.3% on a year-over-year basis.
Shares closed at $55.62 on May 2, up 6.74% following the results. onsemi shares lost 18.1% year to date, outperforming the Zacks Computer & Technology sector’s rise of 21.1%.
Top-Line Details
Power Solutions Group or PSG revenues of $986.7 million (accounting for 50.7% of revenues) surged 32.1% year over year.
Advanced Solutions Group or ASG revenues of $689.3 million (35.4% of revenues) increased 29.7% on a year-over-year basis.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
Intelligent Sensing Group or ISG revenues of $269 million (13.8% of revenues) improved 32.4% year over year.
In terms of end markets, Automotive (36.7% of revenues) revenues were $714.5 million, up 38.4% year over year. Industrial (27.9% of revenues) end-market (includes military, aerospace and medical) revenues increased 47.9% year over year to $543.2 million. Other (35.3% of revenues) end-market revenues grew 15% year over year to $687.3 million.
Operating Details
Non-GAAP gross margin was 49.4% compared with the year-ago quarter’s 35.2%.
Non-GAAP operating expenses declined 6.7% year over year to $302.8 million.
Non-GAAP operating margin was 33.9%, significantly up from the year-ago quarter’s figure of 13.3%, courtesy of a higher revenue base and improvement in gross margin.
Balance Sheet & Cash Flow
As of Apr 1, 2022, onsemi had cash and cash equivalents of $1.65 billion compared with $1.35 billion on Dec 31, 2021.
Total debt (including current portion), as of Apr 1, 2022, was $3.21 billion, down from $3.07 billion reported on Dec 31, 2021.
First-quarter 2022 cash flow from operations amounted to $478.6 million compared with the previous quarter’s reported figure of $626.6 million.
Free cash flow amounted to $304.8 million compared with $457 million in the previous quarter.
Guidance
For second-quarter 2022, onsemi expects revenues between $1.97 billion and $2.07 billion.
Non-GAAP gross margin is projected in the range of 48.5-50.5%.
Non-GAAP operating expenses are expected to be $305-$320 million.
Non-GAAP earnings are envisioned between $1.20 per share and $1.32 per share.
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onsemi's (ON) Q1 Earnings & Revenues Top Estimates, Up Y/Y
onsemi (ON - Free Report) reported first-quarter 2022 non-GAAP earnings of $1.22 per share, outpacing the Zacks Consensus Estimate by 16.19%. The company had reported earnings of 35 cents per share in the year-ago quarter.
Revenues of $1.95 billion beat the Zacks Consensus Estimate by 1.99% and improved 31.3% on a year-over-year basis.
Shares closed at $55.62 on May 2, up 6.74% following the results. onsemi shares lost 18.1% year to date, outperforming the Zacks Computer & Technology sector’s rise of 21.1%.
Top-Line Details
Power Solutions Group or PSG revenues of $986.7 million (accounting for 50.7% of revenues) surged 32.1% year over year.
Advanced Solutions Group or ASG revenues of $689.3 million (35.4% of revenues) increased 29.7% on a year-over-year basis.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote
Intelligent Sensing Group or ISG revenues of $269 million (13.8% of revenues) improved 32.4% year over year.
In terms of end markets, Automotive (36.7% of revenues) revenues were $714.5 million, up 38.4% year over year. Industrial (27.9% of revenues) end-market (includes military, aerospace and medical) revenues increased 47.9% year over year to $543.2 million. Other (35.3% of revenues) end-market revenues grew 15% year over year to $687.3 million.
Operating Details
Non-GAAP gross margin was 49.4% compared with the year-ago quarter’s 35.2%.
Non-GAAP operating expenses declined 6.7% year over year to $302.8 million.
Non-GAAP operating margin was 33.9%, significantly up from the year-ago quarter’s figure of 13.3%, courtesy of a higher revenue base and improvement in gross margin.
Balance Sheet & Cash Flow
As of Apr 1, 2022, onsemi had cash and cash equivalents of $1.65 billion compared with $1.35 billion on Dec 31, 2021.
Total debt (including current portion), as of Apr 1, 2022, was $3.21 billion, down from $3.07 billion reported on Dec 31, 2021.
First-quarter 2022 cash flow from operations amounted to $478.6 million compared with the previous quarter’s reported figure of $626.6 million.
Free cash flow amounted to $304.8 million compared with $457 million in the previous quarter.
Guidance
For second-quarter 2022, onsemi expects revenues between $1.97 billion and $2.07 billion.
Non-GAAP gross margin is projected in the range of 48.5-50.5%.
Non-GAAP operating expenses are expected to be $305-$320 million.
Non-GAAP earnings are envisioned between $1.20 per share and $1.32 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
Analog Devices (ADI - Free Report) , Angi (ANGI - Free Report) and Avaya Holdings are some better-ranked stocks that investors can consider from the broader sector. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices shares have outperformed the sector year-to-date, declining 10%. ADI is set to report second-quarter fiscal 2022 results on May 18.
Angi’s shares have underperformed the sector year to date, declining 49.7%.
ANGI is set to report first-quarter 2022 on May 10.
Avaya’ shares have underperformed sector year to date, declining 50.3%.
Avaya is set to report second-quarter fiscal 2022 results on May 10.