8642

ON Semiconductor (ON) Reports Q3: Everything You Need To Know Ahead Of Earnings


Adam Hejl /
2022/10/31 4:33 am EDT
Add to Watchlist

Analog chips maker ON Semiconductor (NASDAQ: ON) will be reporting results today before market open. Here's what investors should know.

Last quarter ON Semiconductor reported revenues of $2.08 billion, up 24.8% year on year, beating analyst revenue expectations by 3.5%. While the stock dropped on the results, it was an impressive quarter for the company, with a significant improvement in gross margin 

Is ON Semiconductor buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting ON Semiconductor's revenue to grow 21.5% year on year to $2.11 billion, slowing down from the 32.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.31 per share.

ON Semiconductor Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.04%.

Looking at ON Semiconductor's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Texas Instruments delivered top-line growth of 12.8% year on year, beating analyst estimates by 1.9% and Sensata Technologies reported revenues up 7.07% year on year, exceeding estimates by 1.23%. Texas Instruments traded down 4.74% on the results, and Sensata Technologies was flat on the results. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 2.48% over the last month. ON Semiconductor is up 1.86% during the same time, and is heading into the earnings with analyst price target of $74.80, compared to share price of $66.00.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.