Onsemi Reports Earnings, Surpasses Expectations by $0.02 EPS

Onsemi (NASDAQ:ON) announced its earnings results on Monday, revealing a strong performance for the quarter. The semiconductor company reported earnings of $0.99 per share, exceeding analysts' expectations of $0.97 by $0.02. According to market insights, Onsemi generated revenue of $1.76 billion during this period, slightly above the consensus estimate of $1.75 billion.

In terms of profitability, Onsemi achieved a robust net margin of 24.84% and a return on equity of 25.48%. However, it is worth noting that the company's revenue decreased by 19.2% compared to the same quarter last year, when it reported earnings of $1.39 per share. Additionally, Onsemi provided updated guidance for the fourth quarter, estimating earnings per share to range between $0.92 and $1.04.

Stock Performance Update

In trading activities on Tuesday, NASDAQ:ON saw a slight decline of $0.42, bringing its price to $71.82. The trading volume for the day was reported at 717,064 shares, compared to an average daily volume of 6,742,618 shares. Onsemi's financial ratios reflect a quick ratio of 1.95, a current ratio of 3.01, and a debt-to-equity ratio of 0.31.

The company's stock has exhibited a 50-day moving average of $71.52, while its 200-day moving average stands at $71.42. Throughout the past year, Onsemi's stock has reached a low of $59.34 and a high of $86.77. Currently, the company's market capitalization is approximately $30.76 billion, with a price-to-earnings (P/E) ratio of 17.93 and a price/earnings-to-growth (PEG) ratio of 3.82.

Insider Trading Activity

Recently, insider trading activity became notable, as Simon Keeton, an insider at Onsemi, sold 30,939 shares on July 31st at an average price of $77.94, resulting in a total transaction value of $2,411,385.66. Following this transaction, Keeton now owns approximately 231,092 shares valued close to $18,011,310.48.

Additionally, CEO Hassane El-Khoury sold 1,500 shares of the company’s stock on September 16th for a total of $106,200.00. Following this sale, El-Khoury possesses 840,620 shares valued at around $59,515,896. Such transactions were disclosed in filings with the Securities and Exchange Commission (SEC), highlighting the ongoing interest of insiders in managing their stakes in the company.

Analyst Ratings and Recommendations

In the context of analyst evaluations, Onsemi has garnered mixed feedback. Deutsche Bank recently raised its price target for Onsemi from $85.00 to $90.00, assigning a "buy" rating. Similarly, JPMorgan Chase & Co. increased their target from $85.00 to $88.00 and rated the stock as "neutral." On the other hand, Citigroup downgraded Onsemi from a "buy" to a "neutral" rating with a reduced target price of $77.00.

Despite these fluctuations in recommendations, Needham & Company LLC maintained a "buy" rating but decreased its price target from $92.00 to $87.00. In summary, market analysts have provided a range of ratings, including three sell ratings, seven hold ratings, and fifteen buy ratings, indicating a generally cautious yet optimistic outlook for Onsemi as reflected in its average rating of "Hold" and an average price target of $85.91.

About Onsemi

Onsemi is a key player in the semiconductor industry, specializing in innovative power and analog semiconductor solutions. The company focuses on several sectors, including vehicle electrification, sustainable energy, industrial automation, and 5G and cloud infrastructure. Onsemi operates through multiple segments, including the Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group, catering to diverse markets with varying technological needs.

Conclusion

The performance of Onsemi in terms of earnings and revenue suggests that the company is holding its ground in a competitive environment, despite the challenges posed by declining revenues compared to the previous year. With strategic guidance for upcoming quarters and focused operations, Onsemi is well-positioned to navigate potential market fluctuations.

Earnings, Stocks, Performance