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ON Semiconductor said it expects automotive and industrial customers to account for an increasing share of revenue.
Photograph by Adi Goldstein
ON Semiconductor delivered record revenue for the first quarter thanks to demand from automotive and industrial customers. Its financial forecasts were impressive, too.
Adjusted earnings came in at $1.22 a share in the first quarter, higher than the $1.05 a share analysts had predicted, according to FactSet data, and above managements’ previous guidance.
Revenue grew 31% year over year to a record $1.95 billion in the March quarter, exceeding the consensus call of $1.91 billion, driven by growth in the automotive and industrial core market, where revenue increased by 42%. The company’s gross margin expanded to a record 49.4 % in the first quarter.
“Our focused strategy has delivered sustainable results in onsemi’s margin and growth profile with the automotive and industrial end-markets now representing 65% of our revenue,” said CEO Hassane El-Khoury. ON Semi expects the share of revenue from the auto and industrial businesses to rise to about 75% of the total over the next five years.
For the second quarter, the semiconductor-manufacturing company expects to earn $1.20 to $1.32 a share, blowing past analysts’ expectations for $1.05 a share. It expects revenue to be in the range of $1.97 billion to $2.07 billion for the quarter that ends in June, while the consensus call among analysts is for $1.92 billion. Gross margin is expected to be in the range of 48.5% to 50.5%.
The stock was up 3% to $53.66 on Monday.
Write to Karishma Vanjani at [email protected]
Source: https://www.barrons.com/articles/on-semiconductor-earnings-stock-revenue-51651510227?siteid=yhoof2&yptr=yahoo