What's Going On With ON Semiconductor Stock Monday?

ON Semiconductor Corp (NASDAQ: ON) stock reported a fourth-quarter FY23 revenue decline of 4.1% year-on-year to $2.02 billion, beating the consensus of $2.00 billion. 

The adjusted EPS of $1.25 beat the consensus of $1.21. The stock price climbed after the quarterly results.

Revenue from Power Solutions Group (PSG) grew 4% Y/Y to $1.09 billion, Advanced Solutions Group (ASG) decreased 11% Y/Y to $624.6 million, and Intelligent Sensing Group (ISG) fell by 13% Y/Y to $307.7 million.

The gross margin declined by 170 bps to 46.7%, and the adjusted operating margin decreased by 250 bps to 31.6%.

ON Semiconductor generated $220.7 million in free cash flow and held $2.48 billion in cash and equivalents.

“Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue,” CEO Hassane El-Khoury said. “Looking ahead, we are driving innovation beyond silicon and silicon carbide with our upcoming analog and mixed signal platform to further our leadership in intelligent power and sensing solutions.”

Outlook: ON Semiconductor expects first-quarter adjusted revenue of $1.80 billion – $1.90 billion, below the consensus of $1.92 billion.

The company sees adjusted EPS of $0.98 – $1.10 versus the consensus of $1.10.

Price Action: ON shares are trading higher by 8.5% at $76.86 on the last check Monday.