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Analog chips maker ON Semiconductor (NASDAQ:ON) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
ON Semiconductor beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.76 billion, down 19.2% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.
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This quarter, analysts are expecting ON Semiconductor’s revenue to decline 13% year on year to $1.76 billion, a further deceleration from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ON Semiconductor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.
Looking at ON Semiconductor’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Power Integrations (NASDAQ:POWI) delivered year-on-year revenue growth of 17.6%, meeting analysts’ expectations, and Texas Instruments (NASDAQ:TXN) reported a revenue decline of 1.7%, topping estimates by 3.3%. Power Integrations traded down 1.7% following the results while Texas Instruments was also down 7.5%.
Read the full analysis of Power Integrations’s and Texas Instruments’s results on StockStory.
Investors in the analog semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. ON Semiconductor is down 8.7% during the same time and is heading into earnings with an average analyst price target of $78.63 (compared to the current share price of $51).