ON Semiconductor (ON – Free Report) reported fourth-quarter 2024 non-GAAP earnings of 95 cents per share, which outpaced the Zacks Consensus Estimate by 3.06% but declined 24% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $1.72 billion missed the Zacks Consensus Estimate by 2.05% and declined 14.7% on a year-over-year basis.
In terms of end markets, Automotive (59.5% of revenues) revenues were $1.03 billion, down 8% year over year. Industrial (24.2% of revenues) end-market (including military, aerospace and medical) revenues declined 16.1% year over year to $416.9 million. Others (16.3% of revenues) end-market revenues declined 31.1% year over year to $280.1 million.
ON Semiconductor Corporation Price
ON Semiconductor Corporation price | ON Semiconductor Corporation Quote
ON shares were down more than 7% at the time of writing this article. The stock has declined 36.7% in the trailing 12-month period compared with the Zacks Computer & Technology sector’s return of 20.7%.
ON’s Quarter Details
ower Solutions Group revenues of $809.4 million (contributed 47% to revenues) fell 16.2% year over year. Analog & Mixed Group revenues of $610.6 million (35.4% of revenues) declined 18% on a year-over-year basis. Intelligent Sensing Group revenues of $302.5 million (17.6% of revenues) fell 1.7% year over year.
Non-GAAP gross margin contracted 140 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 4.9% year over year to $321.3 million. As a percentage of revenues, operating expenses increased 350 bps year over year.
Non-GAAP operating margin was 26.7%, down 490 bps on a year-over-year basis.
ON’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, onsemi had cash and cash equivalents of $2.69 billion compared with $2.47 billion as of Sept. 27, 2024.
Total debt (including the current portion), as of Dec. 31, 2024, was $3.35 billion, unchanged sequentially.
Fourth-quarter 2024 cash flow from operations amounted to $579.7 million compared with the previous quarter’s reported figure of $465.8 million.
Free cash flow amounted to $264.8 million compared with free cash flow of $304.1 million in the previous quarter.
ON Offers Q1 Guidance
For the first quarter of 2025, onsemi expects revenues between $1.35 billion and $1.45 billion.
Non-GAAP gross margin is projected to be in the range of 39-41%.
Non-GAAP operating expenses are expected to be in the range of $313-$328 million.
Non-GAAP earnings are envisioned between 45 cents per share and 55 cents per share.
ON’s Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #4 (Sell).
Arista Networks (ANET – Free Report) , Twilio (TWLO – Free Report) and DoorDash (DASH – Free Report) are some better-ranked stocks in the broader sector. While ANET and TWLO sport a Zacks Rank #1 (Strong Buy) each, DASH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks is scheduled to report its fourth-quarter 2024 results on Feb. 18. Twilio is set to report fourth-quarter 2024 results on Feb. 13, while DoorDash is scheduled to report its fourth-quarter 2024 results on Feb. 11.
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