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onsemi (ON) Q1 Earnings Beat Estimates, Revenues Down Y/Y
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onsemi (ON - Free Report) reported first-quarter 2024 non-GAAP earnings of $1.08 per share, outpacing the Zacks Consensus Estimate by 3.85% but declining 9.2% year over year.
Revenues of $1.86 billion beat the Zacks Consensus Estimate by 0.61% but declined 4.9% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $874.2 million (accounting for 47% of revenues) increased 1.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.
Analog & Mixed Group revenues of $697 million (37.4% of revenues) decreased 6.4% on a year-over-year basis. The figure beat the consensus mark by 1.45%.
Intelligent Sensing Group revenues of $291.5 million (15.6% of revenues) fell 17.7% year over year. However, the figure missed the consensus mark by 6.09%.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
In terms of end markets, Automotive (54.6% of revenues) revenues were $1.02 billion, up 3.2% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.
Industrial (25.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 14.4% year over year to $476.1 million. The figure lagged the consensus mark by 11.4%.
Others (19.8% of revenues) end-market revenues declined 11.5% year over year to $369.4 million. The figure beat the consensus mark by 19.42%.
Operating Details
Non-GAAP gross margin contracted 90 basis points (bps) year over year to 45.9%.
Non-GAAP operating expenses increased 10% year over year to $314.3 million.
Non-GAAP operating margin was 29%, down 320 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 29, 2024, onsemi had cash and cash equivalents of $2.61 billion compared with $2.48 billion as of Dec 31, 2023.
Total debt (including the current portion), as of Mar 29, 2024, was $3.34 billion, unchanged sequentially.
First-quarter 2024 cash flow from operations amounted to $498.7 million compared with the previous quarter’s reported figure of $611.2 million.
Free cash flow amounted to $276.3 million compared with free cash flow of $220.7 million in the previous quarter.
Guidance
For the second quarter of 2024, onsemi expects revenues between $1.68 billion and $1.78 billion.
Non-GAAP gross margin is projected in the range of 44.2-46.2%.
Non-GAAP operating expenses are expected in the range of $313-$328 million.
Non-GAAP earnings are envisioned between 86 cents per share and 98 cents per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #4 (Sell).
onsemi shares have declined 18.5% year to date, underperforming the Zacks Computer & Technology sector’s increase of 10.2%.
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onsemi (ON) Q1 Earnings Beat Estimates, Revenues Down Y/Y
onsemi (ON - Free Report) reported first-quarter 2024 non-GAAP earnings of $1.08 per share, outpacing the Zacks Consensus Estimate by 3.85% but declining 9.2% year over year.
Revenues of $1.86 billion beat the Zacks Consensus Estimate by 0.61% but declined 4.9% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $874.2 million (accounting for 47% of revenues) increased 1.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.
Analog & Mixed Group revenues of $697 million (37.4% of revenues) decreased 6.4% on a year-over-year basis. The figure beat the consensus mark by 1.45%.
Intelligent Sensing Group revenues of $291.5 million (15.6% of revenues) fell 17.7% year over year. However, the figure missed the consensus mark by 6.09%.
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 (54.6% of revenues) revenues were $1.02 billion, up 3.2% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.
Industrial (25.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 14.4% year over year to $476.1 million. The figure lagged the consensus mark by 11.4%.
Others (19.8% of revenues) end-market revenues declined 11.5% year over year to $369.4 million. The figure beat the consensus mark by 19.42%.
Operating Details
Non-GAAP gross margin contracted 90 basis points (bps) year over year to 45.9%.
Non-GAAP operating expenses increased 10% year over year to $314.3 million.
Non-GAAP operating margin was 29%, down 320 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 29, 2024, onsemi had cash and cash equivalents of $2.61 billion compared with $2.48 billion as of Dec 31, 2023.
Total debt (including the current portion), as of Mar 29, 2024, was $3.34 billion, unchanged sequentially.
First-quarter 2024 cash flow from operations amounted to $498.7 million compared with the previous quarter’s reported figure of $611.2 million.
Free cash flow amounted to $276.3 million compared with free cash flow of $220.7 million in the previous quarter.
Guidance
For the second quarter of 2024, onsemi expects revenues between $1.68 billion and $1.78 billion.
Non-GAAP gross margin is projected in the range of 44.2-46.2%.
Non-GAAP operating expenses are expected in the range of $313-$328 million.
Non-GAAP earnings are envisioned between 86 cents per share and 98 cents per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #4 (Sell).
onsemi shares have declined 18.5% year to date, underperforming the Zacks Computer & Technology sector’s increase of 10.2%.
Pinterest (PINS - Free Report) , Advanced Micro Devices (AMD - Free Report) , and NVIDIA (NVDA - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Pinterest sports a Zacks Rank #1 (Strong Buy) at present, AMD and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pinterest shares have declined 8.3% year to date. PINS is set to report its first-quarter 2024 results on Apr 30.
AMD shares have gained 6.8% year to date. AMD is set to report its first-quarter 2024 results on Apr 30.
NVIDIA shares have gained 77.2% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.