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

Adam Hejl /
2022/10/31 4:33 am EDT
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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.

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