From Nasdaq: 2024-04-29 13:42:00

ON Semiconductor reported first-quarter 2024 non-GAAP earnings of $1.08 per share, beating estimates by 3.85% but down 9.2% year over year. Revenues of $1.86 billion exceeded expectations by 0.61% but fell 4.9% YoY. Power Solutions Group revenues rose 1.6%, Analog & Mixed Group revenues dropped 6.4%, and Intelligent Sensing Group revenues fell 17.7%.

In end markets, Automotive revenues increased 3.2%, Industrial revenues decreased 14.4%, and Others revenues declined 11.5% YoY. Non-GAAP gross margin contracted to 45.9%, operating expenses rose 10%, and operating margin decreased to 29%. Cash and equivalents stood at $2.61 billion, total debt at $3.34 billion, and cash flow from operations at $498.7 million for Q1 2024.

For Q2 2024, ON Semiconductor expects revenues between $1.68 billion and $1.78 billion, with non-GAAP gross margin between 44.2-46.2%, operating expenses of $313-$328 million, and earnings per share between 86 cents and 98 cents. The company currently holds a Zacks Rank #4 (Sell) and shares have declined 18.5% YTD.

Investors can consider better-ranked stocks like Pinterest, Advanced Micro Devices, and NVIDIA in the sector. Pinterest holds a Zacks Rank #1 (Strong Buy), while AMD and NVIDIA carry a Zacks Rank #2 (Buy) each. Pinterest shares have fallen 8.3% YTD, AMD shares have risen 6.8%, and NVIDIA shares have surged 77.2% YTD.



Read more at Nasdaq: onsemi (ON) Q1 Earnings Beat Estimates, Revenues Down Y/Y