We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
onsemi's (ON) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
onsemi (ON - Free Report) reported first-quarter 2023 non-GAAP earnings of $1.19 per share, outpacing the Zacks Consensus Estimate by 2% but declining 2.5% year over year.
Revenues of $1.96 billion beat the Zacks Consensus Estimate by 2% and improved 0.8% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.01 billion (accounting for 51.7% of revenues) increased 2.6% year over year.
Advanced Solutions Group revenues of $592.7 million (30.2% of revenues) decreased 14% on a year-over-year basis.
Intelligent Sensing Group revenues of $354.2 million (18.1% of revenues) jumped 31.7% year over year.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
Image: Bigstock
onsemi's (ON) Q1 Earnings Beat Estimates, Revenues Up Y/Y
onsemi (ON - Free Report) reported first-quarter 2023 non-GAAP earnings of $1.19 per share, outpacing the Zacks Consensus Estimate by 2% but declining 2.5% year over year.
Revenues of $1.96 billion beat the Zacks Consensus Estimate by 2% and improved 0.8% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $1.01 billion (accounting for 51.7% of revenues) increased 2.6% year over year.
Advanced Solutions Group revenues of $592.7 million (30.2% of revenues) decreased 14% on a year-over-year basis.
Intelligent Sensing Group revenues of $354.2 million (18.1% of revenues) jumped 31.7% year over year.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote
In terms of end markets, Automotive (50.3% of revenues) revenues were $986 million, up 38% year over year.
Industrial (28.4% of revenues) end-market (including military, aerospace and medical) revenues increased 6.6% year over year to $556.2 million.
Other (21.3% of revenues) end-market revenues declined 39.3% year over year to $417.5 million.
Operating Details
Non-GAAP gross margin contracted 260 basis points (bps) year over year to 46.8%.
Non-GAAP operating expenses decreased 5.5% year over year to $286 million.
Non-GAAP operating margin was 32.2%, down 170 bps on a year-over-year basis to 32.2%.
Balance Sheet & Cash Flow
As of Mar 31, 2023, onsemi had cash and cash equivalents of $2.70 billion compared with $2.92 billion on Dec 31, 2022.
Total debt (including the current portion), as of Mar 31, 2023, was $3.46 billion, up from $3.19 billion reported on Dec 31, 2022.
First-quarter 2023 cash flow from operations amounted to $408.9 million compared with the previous quarter’s reported figure of $731.3 million.
Free cash flow amounted to $87.4 million compared with $389.3 million in the previous quarter.
Guidance
For the second quarter of 2023, onsemi expects revenues between $1.98 billion and $2.08 billion.
Non-GAAP gross margin is projected in the range of 45.5-47.5%.
Non-GAAP operating expenses are expected in the range of $297-$312 million.
Non-GAAP earnings are envisioned between $1.14 per share and $1.28 per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
The company’s shares have gained 15.4% year to date, outperforming the Zacks Computer & Technology sector’s increase of 20.2%.
Asure Software (ASUR - Free Report) , Fortinet (FTNT - Free Report) and Cambium Networks (CMBM - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Both Asure Software and Fortinet sport a Zacks Rank #1 (Strong Buy) while Cambium carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure shares have gained 42.8% year to date. ASUR is set to report its first-quarter 2023 results on May 8.
Fortinet shares have gained 29% year to date. FTNT is set to report its first-quarter 2023 results on May 4.
Cambium shares have declined 30.1% year to date. CMBM is set to report its first-quarter 2023 results on May 8.