ON Semiconductor (ON) Q4 Earnings: What To Expect

Jabin Bastian /
2023/02/06 2:34 am EST

Analog chips maker ON Semiconductor (NASDAQ: ON) will be announcing earnings results today before market open. Here's what you need to know.

Last quarter ON Semiconductor reported revenues of $2.19 billion, up 25.8% year on year, beating analyst revenue expectations by 3.57%. It was a very strong quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

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 12.5% year on year to $2.07 billion, slowing down from the 27.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 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 3.08%.

Looking at ON Semiconductor's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. MACOM Technology delivered top-line growth of 12.8% year on year, beating analyst estimates by 0.29% and Microchip Technology reported revenues up 23.4% year on year, exceeding estimates by 0.77%. MACOM Technology traded down 1.91% on the results, Microchip Technology was down 2.14%. Read our full analysis of MACOM Technology's results here and Microchip Technology's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 24.4% over the last month. ON Semiconductor is up 30.8% during the same time, and is heading into the earnings with analyst price target of $75.19, compared to share price of $81.14.

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