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onsemi's (ON) Q3 Earnings & Revenues Top Estimates, Up Y/Y
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onsemi (ON - Free Report) reported third-quarter 2022 non-GAAP earnings of $1.45 per share, outpacing the Zacks Consensus Estimate by 10.69% and surging 87% year over year.
Revenues of $2.19 billion beat the Zacks Consensus Estimate by 3.6% and improved 26% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.12 billion (accounting for 50.9% of revenues) increased 25.1% year over year.
Advanced Solutions Group revenues of $734.3 million (33.5% of revenues) increased 19.7% on a year-over-year basis.
Intelligent Sensing Group revenues of $342.2 million (15.6% of revenues) jumped 44.7% year over year.
In terms of end markets, Automotive (39.8% of revenues) revenues were $873.6 million, up 51.8% year over year. Industrial (28% of revenues) end-market (including military, aerospace and medical) revenues increased 27.8% year over year to $613.2 million. Other (32.2% of revenues) end-market revenues grew 2.8% year over year to $705.8 million.
ON Semiconductor Corporation Price and EPS Surprise
Non-GAAP gross margin was 49.3% compared with the year-ago quarter’s 41.5%.
Non-GAAP operating expenses increased 0.4% year over year to $299.8 million.
Non-GAAP operating margin was 35.4%, up from the year-ago quarter’s figure of 24.5%, courtesy of a higher revenue base and improvements in gross margin.
Balance Sheet & Cash Flow
As of Sep 30, 2022, onsemi had cash and cash equivalents of $2.45 billion compared with $1.79 billion on Jul 1, 2022.
Total debt (including the current portion), as of Jul 1, 2022, was $3.21 billion, unchanged from the reported figure on Jul 1, 2022.
Third-quarter 2022 cash flow from operations amounted to $1 billion compared with the previous quarter’s reported figure of $420.8 million.
Free cash flow amounted to $731.3 million compared with $202.7 million in the previous quarter.
Guidance
For fourth-quarter 2022, onsemi expects revenues between $2.01 billion and $2.14 billion.
Non-GAAP gross margin is projected in the range of 47-49%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between $1.18 per share and $1.34 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
onsemi shares have lost 0.7% year to date, outperforming the Zacks Computer & Technology sector’s decline of 33.6%.
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onsemi's (ON) Q3 Earnings & Revenues Top Estimates, Up Y/Y
onsemi (ON - Free Report) reported third-quarter 2022 non-GAAP earnings of $1.45 per share, outpacing the Zacks Consensus Estimate by 10.69% and surging 87% year over year.
Revenues of $2.19 billion beat the Zacks Consensus Estimate by 3.6% and improved 26% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.12 billion (accounting for 50.9% of revenues) increased 25.1% year over year.
Advanced Solutions Group revenues of $734.3 million (33.5% of revenues) increased 19.7% on a year-over-year basis.
Intelligent Sensing Group revenues of $342.2 million (15.6% of revenues) jumped 44.7% year over year.
In terms of end markets, Automotive (39.8% of revenues) revenues were $873.6 million, up 51.8% year over year. Industrial (28% of revenues) end-market (including military, aerospace and medical) revenues increased 27.8% year over year to $613.2 million. Other (32.2% of revenues) end-market revenues grew 2.8% year over year to $705.8 million.
ON Semiconductor Corporation Price and EPS Surprise
ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote
Operating Details
Non-GAAP gross margin was 49.3% compared with the year-ago quarter’s 41.5%.
Non-GAAP operating expenses increased 0.4% year over year to $299.8 million.
Non-GAAP operating margin was 35.4%, up from the year-ago quarter’s figure of 24.5%, courtesy of a higher revenue base and improvements in gross margin.
Balance Sheet & Cash Flow
As of Sep 30, 2022, onsemi had cash and cash equivalents of $2.45 billion compared with $1.79 billion on Jul 1, 2022.
Total debt (including the current portion), as of Jul 1, 2022, was $3.21 billion, unchanged from the reported figure on Jul 1, 2022.
Third-quarter 2022 cash flow from operations amounted to $1 billion compared with the previous quarter’s reported figure of $420.8 million.
Free cash flow amounted to $731.3 million compared with $202.7 million in the previous quarter.
Guidance
For fourth-quarter 2022, onsemi expects revenues between $2.01 billion and $2.14 billion.
Non-GAAP gross margin is projected in the range of 47-49%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between $1.18 per share and $1.34 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
onsemi shares have lost 0.7% year to date, outperforming the Zacks Computer & Technology sector’s decline of 33.6%.
Airbnb (ABNB - Free Report) , Super Micro Computer (SMCI - Free Report) and Blackbaud (BLKB - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three sport a Zacks Rank #1 (Strong Buy) and are set to report their quarterly results on Nov 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Airbnb and Blackbaud are down 30.8% and 31.7% year to date, respectively. Super Micro is up 56.4% over the same time frame.