onsemi ON reported first-quarter 2024 non-GAAP earnings of $1.08 per share, outpacing the Zacks Consensus Estimate by 3.85% but declining 9.2% year over year.
Revenues of $1.86 billion beat the Zacks Consensus Estimate by 0.61% but declined 4.9% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $874.2 million (accounting for 47% of revenues) increased 1.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.
Analog & Mixed Group revenues of $697 million (37.4% of revenues) decreased 6.4% on a year-over-year basis. The figure beat the consensus mark by 1.45%.
Intelligent Sensing Group revenues of $291.5 million (15.6% of revenues) fell 17.7% year over year. However, the figure missed the consensus mark by 6.09%.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote
In terms of end markets, Automotive (54.6% of revenues) revenues were $1.02 billion, up 3.2% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.
Industrial (25.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 14.4% year over year to $476.1 million. The figure lagged the consensus mark by 11.4%.
Others (19.8% of revenues) end-market revenues declined 11.5% year over year to $369.4 million. The figure beat the consensus mark by 19.42%.
Operating Details
Non-GAAP gross margin contracted 90 basis points (bps) year over year to 45.9%.
Non-GAAP operating expenses increased 10% year over year to $314.3 million.
Non-GAAP operating margin was 29%, down 320 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 29, 2024, onsemi had cash and cash equivalents of $2.61 billion compared with $2.48 billion as of Dec 31, 2023.
Total debt (including the current portion), as of Mar 29, 2024, was $3.34 billion, unchanged sequentially.
First-quarter 2024 cash flow from operations amounted to $498.7 million compared with the previous quarter’s reported figure of $611.2 million.
Free cash flow amounted to $276.3 million compared with free cash flow of $220.7 million in the previous quarter.
Guidance
For the second quarter of 2024, onsemi expects revenues between $1.68 billion and $1.78 billion.
Non-GAAP gross margin is projected in the range of 44.2-46.2%.
Non-GAAP operating expenses are expected in the range of $313-$328 million.
Non-GAAP earnings are envisioned between 86 cents per share and 98 cents per share.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #4 (Sell).
onsemi shares have declined 18.5% year to date, underperforming the Zacks Computer & Technology sector’s increase of 10.2%.
Pinterest PINS, Advanced Micro Devices AMD, and NVIDIA NVDA are some better-ranked stocks that investors can consider in the broader sector. While Pinterest sports a Zacks Rank #1 (Strong Buy) at present, AMD and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pinterest shares have declined 8.3% year to date. PINS is set to report its first-quarter 2024 results on Apr 30.
AMD shares have gained 6.8% year to date. AMD is set to report its first-quarter 2024 results on Apr 30.
NVIDIA shares have gained 77.2% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.
Only $1 to See All Zacks’ Buys and Sells
We’re not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not – they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
