Arizona-based company ON Semiconductor Corp. (NASDAQ: ON) provides power and sensing solutions. The company operates for the automotive industry through its Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. These segments offer a range of analog, discrete, module, and integrated semiconductor products that perform multiple application functions.
Quarter 3 Financial Results Announced
ON Semiconductor Corp. announced impressive results for Q3 2023, with a revenue of $2,180.8 million. The company achieved a notable 33% YoY increase in automotive revenue and a slight increase in industrial revenue. However, the overall sales were down by 54 basis points year on year.
The gross margins for the year were 47.3%, while the pretax profit made a growth of 71%. Moreover, the president and chief executive officer, Hassane El-Khoury is bullish on the expected results in the next quarter. He also attributed the current rise in revenue and overall success to continued structural improvements in their silicon carbide operation.
The return on equity (ROE) stayed at 33.8% while the return on assets (ROA) stayed at 18.2%. The returns are impressive considering the average ROE in the industry.
Moreover, the latest balance sheet shows that the company is full of cash and equivalents, with a current ratio of 2.44. in addition to that, the debt-to-equity ratio is 0.5, which shows that the company contains just half the debt compared to its equity.
Technical Analysis and Prediction of the ON Stock Price
At press time, the ON stock price has fallen more than 18% in a single day. The shares are currently trading at a value of $65. The stock has made a massive gap down opening, skipping liquidity. However, the price action of Tuesday and Wednesday will show the actual picture. The trendline will be considered broken if the bears push a lower high below the trend line. The immediate resistance from here is the last broken support of $73, while the immediate support is at $62.
Moving Averages Trading Above Current Price
The relative strength index (RSI) has shrunk past its oversold level of 30. Currently, the RSI is at 21 while its simple moving average line is above 39. Meanwhile, the exponential moving averages are trading above the current price action. The 50-day EMA is at $90.10, while the $ 150-day EMA is situated at $88.4.
The prediction for the ON stock price will be bullish once the buying momentum kicks in. The following few days’ price action will determine the short-term future.
Conclusion
ON Semiconductor Corp. (NASDAQ: ON) has posted its declined growth earnings for the 3rd quarter of this fiscal year. This triggered a selling in the share price which resulted in the stock being down more than 18% in a single day. The current indicators are showing weak bullish momentum and currently, any trade will be risk-averse.
Technical Levels
- Support Levels: $62 and $51
- Resistance Levels: $73 and $86
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/31/on-stock-price-3rd-quarter-results-announced-shares-shrink-18/