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International Markets and ON Semiconductor Corp. (ON): A Deep Dive for Investors

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Have you evaluated the performance of ON Semiconductor Corp.'s (ON - Free Report) international operations for the quarter ending September 2025? Given the extensive global presence of this semiconductor components maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

Our review of ON's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $1.55 billion, showing decrease of 12%. We will now explore the breakdown of ON's overseas revenue to assess the impact of its international operations.

A Look into ON's International Revenue Streams

Of the total revenue, $424.9 million came from Hong Kong during the last fiscal quarter, accounting for 27.4%. This represented a surprise of +5.47% as analysts had expected the region to contribute $402.86 million to the total revenue. In comparison, the region contributed $413.3 million, or 28.1%, and $466.9 million, or 26.5%, to total revenue in the previous and year-ago quarters, respectively.

Singapore accounted for 20.6% of the company's total revenue during the quarter, translating to $320.1 million. Revenues from this region represented a surprise of -9.36%, with Wall Street analysts collectively expecting $353.17 million. When compared to the preceding quarter and the same quarter in the previous year, Singapore contributed $326.9 million (22.3%) and $449.5 million (25.5%) to the total revenue, respectively.

United Kingdom generated $315 million in revenues for the company in the last quarter, constituting 20.3% of the total. This represented a surprise of -9.9% compared to the $349.6 million projected by Wall Street analysts. Comparatively, in the previous quarter, United Kingdom accounted for $327.4 million (22.3%), and in the year-ago quarter, it contributed $395.8 million (22.5%) to the total revenue.

Revenue Projections for Overseas Markets

The current fiscal quarter's total revenue for ON Semiconductor Corp., as projected by Wall Street analysts, is expected to reach $1.53 billion, reflecting a decline of 11% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Hong Kong is anticipated to contribute 26.3% or $403.81 million, Singapore 22.5% or $345.38 million and United Kingdom 23% or $352.45 million.

For the full year, the company is projected to achieve a total revenue of $5.99 billion, which signifies a fall of 15.4% from the last year. The share of this revenue from various regions is expected to be: Hong Kong at 26.5% ($1.59 billion), Singapore at 21.7% ($1.3 billion), and United Kingdom at 23.3% ($1.4 billion).

Wrapping Up

ON Semiconductor Corp.'s leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

ON Semiconductor Corp., bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

ON Semiconductor Corp.'s Recent Stock Market Performance

Over the past month, the stock has seen a decline of 10.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 1.5%. The Zacks Computer and Technology sector, ON Semiconductor Corp.'s industry group, has ascended 1.6% over the identical span. In the past three months, there's been a decline of 9.5% in the company's stock price, against a rise of 4.5% in the S&P 500 index. The broader sector has increased by 8.4% during this interval.


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