ON Semiconductor (ON) Reports Earnings Tomorrow: What To Expect

Radek Strnad /
2024/04/28 3:01 am EDT

Analog chips maker ON Semiconductor (NASDAQ:ON) will be reporting results tomorrow before market open. Here's what to look for.

ON Semiconductor met analysts' revenue expectations last quarter, reporting revenues of $2.02 billion, down 4.1% year on year. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

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

This quarter, analysts are expecting ON Semiconductor's revenue to decline 5.6% year on year to $1.85 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.05 per share.

ON Semiconductor Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they are expecting the business to stay the course heading into earnings. ON Semiconductor has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.2% on average.

Looking at ON Semiconductor's peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments's revenues decreased 16.4% year on year, beating analysts' expectations by 1.4%, and Impinj reported a revenue decline of 10.6%, topping Wall Street's consensus estimates by 4.4%. Texas Instruments traded up 5.7% following the results while Impinj was also up 28.8%.

Read our full analysis of Texas Instruments's results here and Impinj's results here.

Growth stocks have been quite volatile to start 2024, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 2.9% over the last month. ON Semiconductor is down 7.2% during the same time and is heading into earnings with an average analyst price target of $86 (compared to share price of $68.5).

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