Analog chips maker ON Semiconductor (NASDAQ:ON) will be announcing earnings results today. Here's what you need to know.
Last quarter ON Semiconductor reported revenues of $2.18 billion, down 0.5% year on year, beating analyst revenue expectations by 1.5%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating 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 decline 4.5% year on year to $2.01 billion, a deceleration on the 13.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.
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 2.5%.
Looking at ON Semiconductor's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. MACOM's revenues decreased 12.7% year on year, beating analyst estimates by 2.9% and Skyworks Solutions reported revenue decline of 9.6% year on year, missing analyst estimates by 0.2%. MACOM traded up 4.3% on the results, Skyworks Solutions was up 5.5%.
Read our full analysis of MACOM's results here and Skyworks Solutions's results here.
There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 2% over the last month. ON Semiconductor is down 9.3% during the same time, and is heading into the earnings with analyst price target of $88.1, compared to share price of $70.7.
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The author has no position in any of the stocks mentioned.