onsemi (ON) to Report Q1 Earnings: What's in the Cards?

On Semiconductor ON is slated to release its first-quarter 2024 results on Apr 29.

For first-quarter 2024, onsemi expects revenues between $1.80 billion and $1.90 billion. Earnings are expected in the range of 98 cents-$1.10 per share.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.04 per share, unchanged in the past 30 days, indicating a decline of 12.61% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $1.85 billion, suggesting a decline of 5.52% from the year-ago quarter’s reported figure.

ON Semiconductor Corporation Price and EPS Surprise

ON Semiconductor Corporation Price and EPS Surprise

ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote


onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.57%.

Let us see how things are shaping up prior to this announcement.

Factors Likely to Have Influenced Q1 Performance

onsemi’s fourth-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets, particularly in areas such as electric vehicles, advanced driver-assistance systems and energy infrastructure.

onsemi’s broad-based strength across industrial, computing, consumer and automotive end-markets for both silicon carbide and insulated-gate bipolar transistor-based products remains positive.

Moreover, the company is winning market share in the automotive segment, thanks to its silicon carbide dominance, as well as intelligent power and sensing solutions.

onsemi's EliteSIC silicon carbide modules increase the efficiency and lower the weight of the traction inverters, extending electric vehicle range and improving performance.

However, softness across all the end markets due to slowing demand and continuing inventory digestion is expected to have hurt onsemi’s top-line growth in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Onsemi has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks is set to announce first-quarter 2024 results on May 7. ANET’s shares are up 8.2% year to date.

Advanced Micro Devices AMD has an Earnings ESP of +28.33% and a Zacks Rank #2.

AMD is set to announce first-quarter 2024 results on Apr 30. AMD’s shares have gained 2.9% in the year-to-date period.

Silicon Motion Technology SIMO has an Earnings ESP of +5.96% and a Zacks Rank #2.

Silicon Motion Technology is set to announce first-quarter fiscal 2024 results on May 2. SIMO’s shares have gained 20.3% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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