ON Semiconductor Corp (NASDAQ: ON) stock reported a fiscal third-quarter 2024 revenue decline of 19.2% year-on-year to $1.76 billion, beating the analyst consensus estimate of $1.75 billion.
The adjusted EPS of $0.99 beat the analyst consensus estimate of $0.97.
Revenue from Power Solutions Group (PSG) declined 23% year over year to $829.4 million, Analog and Mixed-Signal Group (AMG) decreased 16% year over year to $653.7 million, and Intelligent Sensing Group (ISG) fell 15% year over year to $278.8 million.
Also Read: ON Semiconductor Diversifies Supply Chain, Targets Savings With New Manufacturing Investments
The adjusted gross margin declined by 180 bps to 45.5%, and the adjusted operating margin decreased by 440 bps to 28.2%, implying semiconductor industry pricing pressures.
ON Semiconductor generated $293.6 million in free cash flow and held $2.77 billion in cash and equivalents as of September 27, 2024.
CEO Hassane El-Khoury: “As power demands continue to rise across our key markets, and the need for greater efficiency becomes paramount, we are investing to win across the entire power spectrum to ensure that onsemi is best positioned to gain share in automotive, industrial and AI data center.”
Outlook: ON Semiconductor expects fourth-quarter adjusted revenue of $1.71 billion—$1.80 billion, versus the consensus of $1.75 billion.
The company expects adjusted EPS of $0.92–$1.04 versus the consensus of $0.97.
ON Semiconductor stock declined 13% year-to-date. At least three Wall Street firms slashed their price targets on the stock in July including two rating downgrade. The company’s topline and margins took a hit for the three quarters of 2024.
Price Action: ON stock is up 2.71% at $73.18 premarket at the last check on Monday.
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