onsemi (NASDAQ:ON) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• onsemi beat quarterly expectations: The semiconductor company reported EPS of $0.90, $0.02 above consensus, while revenue reached $1.72 billion versus estimates of $1.71 billion.
• Shares declined despite the earnings beat, falling to $70.11 in mid-day trading. The stock remains well below its 52-week high of $134.92 and trades at a price-to-earnings ratio of about 45.
• Analyst sentiment is cautiously positive, with a “Moderate Buy” consensus and an average price target of $92.68, although several firms have lowered targets amid concerns about near-term growth, margins, and automotive and industrial demand.

onsemi (NASDAQ:ON - Get Free Report) announced its quarterly earnings data on Monday. The semiconductor company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.02, FiscalAI reports. onsemi had a return on equity of 14.06% and a net margin of 10.17%. The business had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.71 billion.

onsemi Stock Performance

ON stock traded down $1.56 during mid-day trading on Monday, reaching $70.11. 12,253,313 shares of the stock traded hands, compared to its average volume of 10,520,491. The firm has a market capitalization of $27.29 billion, a PE ratio of 44.94, a P/E/G ratio of 0.59 and a beta of 2.11. The business has a 50-day moving average of $74.75 and a two-hundred day moving average of $81.96. onsemi has a 52 week low of $44.56 and a 52 week high of $134.92. The company has a quick ratio of 2.49, a current ratio of 3.46 and a debt-to-equity ratio of 0.51.

Analyst Ratings Changes

Several analysts have commented on the stock. Stifel Nicolaus boosted their target price on shares of onsemi from $75.00 to $80.00 and gave the stock a "hold" rating in a research report on Monday, October 5th. Needham & Company LLC restated a "buy" rating and set a $116.00 price target on shares of onsemi in a report on Friday, October 2nd. TD Cowen decreased their price objective on shares of onsemi from $95.00 to $75.00 and set a "hold" rating for the company in a report on Monday, October 19th. Seaport Research Partners initiated coverage on shares of onsemi in a research report on Tuesday, September 22nd. They set a "buy" rating and a $100.00 target price on the stock. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $62.00 target price on shares of onsemi in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $92.68.

onsemi News Summary

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Analysts expect third-quarter revenue of approximately $1.7 billion and EPS of about $0.88. A result above those expectations, particularly if supported by improving automotive and industrial semiconductor demand, could provide a near-term catalyst. ON Semiconductor Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: onsemi is scheduled to report quarterly results imminently, making earnings guidance, order trends and comments on inventory normalization the primary near-term drivers for ON. Investors are likely focused more on the forward outlook than on the quarter’s headline results. Earnings to watch: onsemi (ON) reports Q3 results tomorrow
• Negative Sentiment: Analysts have recently reduced their price targets for onsemi despite generally constructive ratings. The revisions signal concern about near-term growth and margins and may be contributing to selling pressure ahead of the report. ON Semiconductor Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Negative Sentiment: With the stock trading at roughly 45 times earnings and materially below its 52-week high, investors appear to be demanding evidence of a sustained recovery. Any earnings miss, cautious guidance or continued weakness in automotive and industrial markets could intensify the decline.

Insider Buying and Selling at onsemi

In related news, insider Sudhir Gopalswamy sold 15,578 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $80.00, for a total transaction of $1,246,240.00. Following the completion of the sale, the insider owned 158,177 shares in the company, valued at $12,654,160. This represents a 8.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.35% of the company's stock.

About onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

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