ON Semiconductor Corp. (NASDAQ: ON) will release an earnings report on July 31, 2023, before the opening bell; pre-buzz led ON Stock up by 2.92%. On July 27, 2023, Onsemi announced entering a strategic agreement with Magna International Inc. (NYSE: MGA) to invest in silicon carbide manufacturing. Together, they wish to leverage the growing electric vehicle sector.
ON Semiconductor Corp. (ON) Stock: Magna Deal and Financial Analysis
Magna will integrate the Onsemi EliteSic unit into its traction inverter solutions per the agreement. This integration could highly increase the efficiency and range of EVs. The two companies entered a long-term supply agreement (LTSA) for Magna’s eDrive systems.
Magna will also invest around $40 Million in buying new SiC equipment at Onsemi’s facilities in New Hampshire & Czech Republic. Last week, ON stock was at its all-time high of $105.39. The critical auto and industrial market sales have decreased for the previous 2 Quarters. Investors hope the sales should improve in Q2 2023.
At press time, Taiwan Semiconductor Mgf. Co. Ltd. (NYSE: TSM) gained 1.52% and crossed the $100 mark, trading at $100.86.
On Semiconductor Corp. (NASDAQ: ON): Technical Analysis and Earnings Preview
At press time, ON Stock is trading at $105.09 with a jump of 2.92%; previous close and open were at $102.11 to $103.70, respectively. The 52-week range is from $54.93 to $105.39, indicating that the current price can beat the high soon. With a volume of 7.35 Million shares, the market cap is $45.386 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 25.82, showcasing a fairly valued stock. At the same time, (TTM), earnings per share (EPS) is $4.07, indicating strength. Analysts placed a price target at $96.62 with an 8.1% downside and provided a 2.74 rating for moderate buy.
Onsemi reported its Q1 earnings on May 1, 2023, where the reported revenue of $1.96 Billion exceeded the expected value of $1.924 Billion by 1.83%. When compared to the previous quarter, revenue swelled by 0.76%.
At the same time, the reported earnings of $1.19 per share surpassed the estimated value of $1.084 per share.
While comparing earnings to previous quarters, EPS fell by 2.46%. These positive earnings helped ON’s share price gain around 15% during the last few trading sessions. The EPS of Q1 2023 decreased by 9.7% year-over-year (YoY) while the revenue contracted by 3.3%.
In the last two years, Onsemi surpassed the consensus earnings estimate by 100%. The same is the case with the revenue as well. Considering the last three months, EPS registered 25 up moves and 1 downward. Revenue estimates have been significant, surpassing expectations 22 times and failing only once.
On Semiconductor Corp. (ON) Stock: Candle Exploration
Since May 2023, ON’s share price action has formed higher-high swings in an ascending channel. Hence, it is increasing the chances of the share price breaking the 52-week high point. Even if there is a drop, it shall bounce off the trend line and rally again, forming new high points.
If the earnings report on July 31, 2023, comes out negative, the price might come down to bounce off the crucial resistance at $95.86. The chances of the price going down to the buying zone are slim, considering the bullish momentum of ON stock.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/29/on-semiconductor-corp-on-stock-july-31-2023-earnings-preview/