Shares of Onsemi (ON) climbed 5.1% in the market pre-open Monday after the semiconductor manufacturer posted better-than-expected fourth-quarter earnings and revenue
Specifically, the chipmaker posted Q4 earnings per share (EPS) of $1.25, beating the consensus projection of $1.20. Revenue came in at $2.02 billion, while analysts were looking for $2 billion.
Fourth quarter GAAP and non-GAAP gross margin stood at 46.7%, while non-GAAP operating margin was 31.6% in the quarter.
For the full fiscal 2023, Onsemi reported record automotive revenue of $4.3 billion, up 29% year-over-year.
The company said it bought back $564 million worth of its stock during the year, representing 140% of free cash flow (FCF).
For the fiscal Q1 2024, diluted EPS are estimated to range between $0.98 and $1.10, while analysts forecasted $1.1. The chipmaker expects revenue to be in the range of $1.8 billion to $1.9 billion, compared to the consensus projection of $1.92 billion.
Onsemi anticipated to report a gross margin of 44.5% to 46.5%.
“Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue,” said Hassane El-Khoury, president and CEO of Onsemi.
“We continue to transform the business by building resilience into our model, enabling us to navigate uncertain market conditions and deliver more predictable and sustainable results.”