ON Semiconductor Corp (NASDAQ: ON) reported better-than-expected results for its fiscal third quarter on Monday. Shares are still down about 8.0%.
Highlights from CEO’s interview with CNBC
Investors are responding negatively since they expected more in terms of the future guidance.
ON Semi is calling for $2.01 billion to $2.14 billion in revenue on $1.18 to $1.34 of earnings per share. While that’s roughly in line with Street estimates, the outlook, nonetheless, suggests a sequential decline.
Explaining how the Nasdaq-listed firm is positioned for a recession in 2023, CEO Hassane El-Khoury said on CNBC’s “TechCheck”:
We’ve been very proactive in managing inventory down – the worst thing you want to do is try to navigate a downturn while having a very large inventory. We’ve also been proactive in reducing our forward potential costs that will drag on gross margin.
Including response to this stock market news, ON Semi stock is now down nearly 20% versus its year-to-date high in late August.
Notable figures in On Semi Q3 earnings report
- Earned $311.9 million versus the year-ago $309.7 million
- Per-share earnings remained unchanged at 70 cents a share
- Adjusted EPS was $1.45 as per the earnings press release
- Revenue jumped 26% year-over-year to $2.19 billion
- Consensus was $1.31 a share on $2.12 billion in revenue
Adjusted operating margin climbed 1,100 bps to a record 35.4%. CEO El-Khoury sees big future for the Phoenix-headquartered firm in EVs.
The number of EVs they will manufacture in 2023 is going to be above the number of EVs they launched in 2022. That number is what’s fuelling our growth in the short term and that’s going to continue to fuel our growth in the long term.