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onsemi's (ON) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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onsemi (ON - Free Report) reported fourth-quarter 2022 non-GAAP earnings of $1.32 per share, outpacing the Zacks Consensus Estimate by 3.94% but declining 9% year over year.
Revenues of $2.10 billion beat the Zacks Consensus Estimate by 1.1% and improved 14% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.05 billion (accounting for 49.8% of revenues) increased 10% year over year.
Advanced Solutions Group revenues of $700.9 million (33.3% of revenues) increased 8.3% on a year-over-year basis.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
Intelligent Sensing Group revenues of $354.3 million (16.8% of revenues) jumped 44.4% year over year.
In terms of end markets, Automotive (47% of revenues) revenues were $988.7 million, up 54.2% year over year. Industrial (26.3% of revenues) end-market (including military, aerospace and medical) revenues increased 5.8% year over year to $552.4 million. Other (26.7% of revenues) end-market revenues declined 17.6% year over year to $562.6 million.
Operating Details
Non-GAAP gross margin was 48.4% compared with the year-ago quarter’s 45.2%.
Non-GAAP operating expenses decreased 2% year over year to $300.4 million.
Non-GAAP operating margin was 34.1%, up from the year-ago quarter’s figure of 28.6%, courtesy of a higher revenue base and improvements in gross margin.
Balance Sheet & Cash Flow
As of Dec 31, 2022, onsemi had cash and cash equivalents of $2.92 billion compared with $2.45 billion on Sep 30, 2022.
Total debt (including the current portion), as of Dec 31, 2022, was $3.19 billion, down from $3.21 billion reported on Sep 30, 2022.
Fourth-quarter 2022 cash flow from operations amounted to $731.3 million compared with the previous quarter’s reported figure of $1 billion.
Free cash flow amounted to $389.3 million compared with $731.3 million in the previous quarter.
Guidance
For first-quarter 2023, onsemi expects revenues between $1.87 billion and $1.97 billion.
Non-GAAP gross margin is projected in the range of 45.7-47.7%.
Non-GAAP operating expenses are expected in the range of $298-$313 million.
Non-GAAP earnings are envisioned between $1.02 per share and $1.14 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
onsemi shares have gained 29.9% in the past year, outperforming the Zacks Computer & Technology sector’s decline of 16.5%.
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onsemi's (ON) Q4 Earnings Beat Estimates, Revenues Up Y/Y
onsemi (ON - Free Report) reported fourth-quarter 2022 non-GAAP earnings of $1.32 per share, outpacing the Zacks Consensus Estimate by 3.94% but declining 9% year over year.
Revenues of $2.10 billion beat the Zacks Consensus Estimate by 1.1% and improved 14% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.05 billion (accounting for 49.8% of revenues) increased 10% year over year.
Advanced Solutions Group revenues of $700.9 million (33.3% of revenues) increased 8.3% 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 revenues of $354.3 million (16.8% of revenues) jumped 44.4% year over year.
In terms of end markets, Automotive (47% of revenues) revenues were $988.7 million, up 54.2% year over year. Industrial (26.3% of revenues) end-market (including military, aerospace and medical) revenues increased 5.8% year over year to $552.4 million. Other (26.7% of revenues) end-market revenues declined 17.6% year over year to $562.6 million.
Operating Details
Non-GAAP gross margin was 48.4% compared with the year-ago quarter’s 45.2%.
Non-GAAP operating expenses decreased 2% year over year to $300.4 million.
Non-GAAP operating margin was 34.1%, up from the year-ago quarter’s figure of 28.6%, courtesy of a higher revenue base and improvements in gross margin.
Balance Sheet & Cash Flow
As of Dec 31, 2022, onsemi had cash and cash equivalents of $2.92 billion compared with $2.45 billion on Sep 30, 2022.
Total debt (including the current portion), as of Dec 31, 2022, was $3.19 billion, down from $3.21 billion reported on Sep 30, 2022.
Fourth-quarter 2022 cash flow from operations amounted to $731.3 million compared with the previous quarter’s reported figure of $1 billion.
Free cash flow amounted to $389.3 million compared with $731.3 million in the previous quarter.
Guidance
For first-quarter 2023, onsemi expects revenues between $1.87 billion and $1.97 billion.
Non-GAAP gross margin is projected in the range of 45.7-47.7%.
Non-GAAP operating expenses are expected in the range of $298-$313 million.
Non-GAAP earnings are envisioned between $1.02 per share and $1.14 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
onsemi shares have gained 29.9% in the past year, outperforming the Zacks Computer & Technology sector’s decline of 16.5%.
Cambium Networks (CMBM - Free Report) , Bruker (BRKR - Free Report) and RingCentral (RNG - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Cambium sports a Zacks Rank #1 (Strong Buy), both Bruker and RingCentral carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium shares have declined 11.3% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Bruker shares have gained 7.5% in the past year. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
RingCentral shares have declined 72.1% in the past year. RNG is set to report its fourth-quarter 2022 results on Feb 15.