onsemi ON reported second-quarter 2024 non-GAAP earnings of 96 cents per share, outpacing the Zacks Consensus Estimate by 4.35% but declining 27.8% year over year.
Revenues of $1.73 billion beat the Zacks Consensus Estimate by 0.2% but declined 17.2% on a year-over-year basis.
Top-Line Details
Power Solutions Group revenues of $835.2 million (contributing 48.1% to revenues) fell 14.5% year over year. The figure beat the Zacks Consensus Estimate by 2%.
Analog & Mixed Group revenues of $647.8 million (37.3% of revenues) declined 18.2% on a year-over-year basis. The figure beat the consensus mark by 0.70%.
ON Semiconductor Corporation Price, Consensus and EPS Surprise
ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote
Intelligent Sensing Group revenues of $252.2 million (14.5% of revenues) fell 22.4% year over year. The figure missed the consensus mark by 6.03%.
In terms of end markets, Automotive (52.3% of revenues) revenues were $906.9 million, down 14.6% year over year. The figure also missed the Zacks Consensus Estimate by 4.93%.
Industrial (27% of revenues) end-market (including military, aerospace and medical) revenues declined 23.2% year over year to $468 million. The figure beat the consensus mark by 5.99%.
Others (20.8% of revenues) end-market revenues declined 14.9% year over year to $360.3 million. The figure beat the consensus mark by 7.65%.
Operating Details
Non-GAAP gross margin contracted 210 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 0.9% year over year to $308.4 million.
Non-GAAP operating margin was 27.5%, down 530 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Jun 28, 2024, onsemi had cash and cash equivalents of $2.23 billion compared with $2.61 billion as of Mar 29, 2024.
Total debt (including the current portion), as of Jun 28, 2024, was $3.34 billion, unchanged sequentially.
Second-quarter 2024 cash flow from operations amounted to $362.2 million compared with the previous quarter’s reported figure of $498.7 million.
Free cash flow amounted to $207.7 million compared with free cash flow of $276.3 million in the previous quarter.
Guidance
For the third quarter of 2024, onsemi expects revenues between $1.7 billion and $1.8 billion.
Non-GAAP gross margin is projected in the range of 44.4-46.4%.
Non-GAAP operating expenses are expected in the range of $305-$320 million.
Non-GAAP earnings are envisioned between 91 cents per share and 1.03 cents.
Zacks Rank & Stocks to Consider
onsemi currently has a Zacks Rank #3 (Hold).
The stock has declined 16% year to date against the Zacks Computer & Technology sector’s increase of 18.3%.
Arista Networks ANET, Apple AAPL and Cognizant Technology Solutions CTSH are some better-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 35.6% year to date. ANET is set to report second-quarter 2024 results on Jul 30.
Apple’s shares have increased 13.2% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have moved down 1.2% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Free Report – 3 Stocks Sneaking Into Hydrogen Energy
Demand for clean hydrogen energy is projected to reach $500 billion by 2030 and grow 5-FOLD by 2050. No guarantees, but three companies are quietly getting the jump on their competition.
Zacks Investment Research is temporarily offering an urgent Special Report naming and explaining these emerging powerhouses primed to boom. Click below for Hydrogen Energy: 3 Industrial Giants to Ride the Next Renewable Energy Wave.
See Stocks Now >>Apple Inc. (AAPL) : Free Stock Analysis Report
Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
