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onsemi (ON) to Report Q1 Earnings: What's in the Cards?

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onsemi (ON - Free Report) is slated to release its first-quarter 2023 results on May 1.

For first-quarter 2023, onsemi expects revenues between $1.87 billion and $1.97 billion. Earnings are expected in the range of $1.02-$1.14 per share.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.09 per share, unchanged in the past 30 days, indicating a decline of 10.66% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $1.92 billion, suggesting a deterioration of 1.22% from the year-ago quarter’s reported figure.

ON Semiconductor Corporation Price and EPS Surprise

 

 

onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.29%.

Let’s see how things are shaping up prior to this announcement.

Factors to Note

onsemi’s first-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets.

It is winning market share in the automotive segment, thanks to its silicon carbide dominance and intelligent power and sensing solution.

onsemi's EliteSIC silicon carbide modules increase the efficiency and lower the weight of the traction inverters, extending electric vehicle range and improving performance. These factors are likely to have driven its first-quarter top line.

In this regard, an expanding clientele in the likes of Volkswagen, Tesla, Mercedes Benz, Jaguar Land Rover and Hyundai Motor Group are expected to have driven demand for silicon carbide and benefited top-line growth.

Control towards wafer starts, inventory level management and disciplined spending are likely to have driven higher margin performance in the to-be-reported quarter.

However, onsemi’s first-quarter performance is expected to have been affected by stiff competition and consolidation in the semiconductor industry. Also, persistent weakness in non-strategic end markets of computing and consumer is expected to have hurt the top line.

onsemi is expected to have faced global supply chain constrains in the to-be reported quarter. It continues to add capacity in its Hudson, Czech Republic and South Korea manufacturing sites to overcome supply chain issues.

What Our Model Indicates

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 a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

MKS Instruments (MKSI - Free Report) has an Earnings ESP of +46.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

MKS Instruments’ shares have declined 5.9% year to date. MKSI is set to report its first-quarter 2023 results on May 3.

Sabre (SABR - Free Report) has an Earnings ESP of +19.15% and a Zacks Rank of 3, at present.

Sabre shares have declined 40.3% year to date. SABR is set to report its first-quarter 2023 results on May 4.

Airbnb (ABNB - Free Report) has an Earnings ESP of +23.46% and a Zacks Rank #3.

Airbnb shares have gained 31.6% year to date. ABNB is set to report its first-quarter 2023 results on May 9.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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