ON Semiconductor (ON) Q2 Earnings: What To Expect

Anthony Lee /
2023/05/01 2:55 am EDT
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Analog chips maker ON Semiconductor (NASDAQ: ON) will be reporting results today before the bell. Here's what you need to know.

Last quarter ON Semiconductor reported revenues of $2.1 billion, up 8.15% year on year, beating analyst revenue expectations by 5.32%. It was a mixed quarter for the company, with a beat on the bottom line but underwhelming revenue guidance for the next quarter.

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 decline 7.31% year on year to $1.93 billion, a deceleration on the 24.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 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 2.91%.

With ON Semiconductor being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductors stocks, but the whole sector has been facing a sell-off since November 2021, with stocks down on average 9.57% over the last month. ON Semiconductor is down 11.3% during the same time, and is heading into the earnings with analyst price target of $91.76, compared to share price of $71.94.

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.