From Financial Modeling Prep: 2025-02-10 12:25:00

ON Semiconductor (NASDAQ:ON) stock plummeted 8% after reporting Q4 earnings below expectations and a weak outlook for Q1 2025. Adjusted EPS was $0.95, missing estimates of $0.97, with revenue at $1.72 billion, below projections of $1.76 billion and down from $2.1 billion last year.

The first-quarter guidance shocked investors with adjusted EPS expected between $0.45 and $0.55, far below the $0.89 estimate. Revenue projections of $1.35 billion to $1.45 billion also missed the expected $1.69 billion, signaling a tough start to 2025.

CEO Hassane El-Khoury highlighted the company’s resilience in facing industry downturns, citing structural improvements made over the past four years. Despite the challenging outlook, ON Semiconductor generated strong free cash flow in 2024, tripling year-over-year to $1.2 billion.

ON Semiconductor returned 54% of the free cash flow to shareholders through stock buybacks, emphasizing its commitment to long-term value creation. The company’s focus on navigating market volatility and creating shareholder value remains strong despite the disappointing near-term outlook.



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