ON Semiconductor (ON) beat Wall Street's first-quarter targets on Monday, but fell short of expectations for the current period. Still, ON stock rose in early trading.
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The Scottsdale, Arizona-based company, known as Onsemi, earned an adjusted $1.08 per share on revenue of $1.86 billion in the March quarter. Analysts polled by FactSet expected earnings of $1.04 per share on revenue of $1.85 billion. On a year-over-year basis, Onsemi's profit fell 9%, while revenue fell 5%.
With its first-quarter report, Onsemi has now posted five consecutive quarters of declining year-over-year profits. Sales have fallen for three quarters in a row due to a cyclical slowdown in demand.
For the current quarter, Onsemi expects adjusted earnings of 92 cents per share on revenue of $1.73 billion. That is based on the center of the guidance. Analysts expected a profit of $1 per share on revenue of $1.82 billion in the second quarter. In the same quarter last year, Onsemi earned $1.33 per share on revenue of $2.09 billion.
ON shares rise on earnings news
In premarket trading on the stock market today, ON stock rose 0.9% to 68.70.
Onsemi makes power and sensor chips for the automotive and industrial markets. Its fortunes are linked to megatrends such as vehicle electrification and safety, sustainable energy networks, industrial automation and 5G and cloud infrastructure.
“As energy continues to play a critical role in the world's increasing energy demand, efficiency is of paramount importance, and we are positioned to continue to gain market share with our portfolio of leading energy and sensor technologies,” said CEO Hassane El-Khoury. a press release.
Other semiconductor stocks exposed to the automotive and industrial markets include NXP semiconductors (NXPI), STMicroelectronics (STM) And Texas Instruments (TXN).
ON stock ranks No. 13 out of 33 stocks in IBD's semiconductor industry group, according to IBD inventory check. It has an inadequate IBD Composite Rating of 49 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.
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