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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