ON Semiconductor Shares Soar On Q3 Beat, Stellar Q4 Outlook

ON Semiconductor Corp ON reported third-quarter FY21 revenue growth of 32% year-on-year to $1.74 billion, beating the consensus of $1.71 billion.
Revenue from Power Solutions Group (PSG) grew 38% Y/Y to $892.1 million, Advanced Solutions Group (ASG) increased 24% Y/Y to $613.5 million, and Intelligent Sensing Group (ISG) rose 35% Y/Y to $236.5 million.
The non-GAAP gross margin expanded 800 bps to 41.5%, and the non-GAAP operating margin expanded by 1,250 bps to 24.5%.
Non-GAAP EPS of $0.87 beat the consensus of $0.74.
ON Semiconductor generated $448.9 million in operating cash flow and held $1.39 billion in cash and equivalents.
The company noted demand remained strong for its intelligent power and sensing solutions in the automotive and industrial end markets.
"With a rapidly expanding design-win funnel for disruptive applications such as electric vehicles, ADAS, industrial automation, and alternative energy, coupled with ongoing transformational changes, we are making sustainable progress towards our target financial model," said CEO Hassane El-Khoury.
Outlook: ON Semiconductor sees Q4 revenue of $1.74 billion - $1.84 billion, above the consensus of $1.72 billion.
It sees non-GAAP EPS of $0.89 - $1.01 versus the consensus of $0.75.
Price Action: ON shares traded higher by 12.5% at $54 on the last check Monday.

Momentum11.56

Growth17.95

Quality54.62

Value65.64

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