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Key Takeaways
- Onsemi shares surged Monday as the chipmaker reported first-quarter profit and sales that beat analysts’ estimates, but gave weak guidance for the current quarter.
- Revenue rose at Onsemi’s Power Solutions Group, but fell at the company’s other two units.
- CEO Hassane El-Khoury said the company has faced challenging market conditions.
Onsemi (ON) shares gained nearly 4% in intraday trading Monday after the provider of semiconductors for the automotive industry posted stronger-than-expected results for the first quarter, but offered soft guidance as it said it faces tough economic conditions.
Revenue, EPS Beat Analysts’ Estimates
Onsemi reported first-quarter diluted earnings per share (EPS) of $1.04, down from $1.28 in the year-ago period, but ahead of analyst forecasts compiled by Visible Alpha. Revenue declined 5% year-over-year to $1.86 billion, although that also was more than anticipated.
Sales at Onsemi’s Power Solutions Group (PSG) advanced 2% to $872.4 million. They fell 6% to $697.0 million at the Analog and Mixed-Signal Group (AMG), and 18% to $291.5 million at the Intelligent Sensing Group (ISG).
CEO Says Structural Changes Helped
CEO Hassane El-Khoury said that structural changes Onsemi made to the business over the past three years “have enabled us to sustain our gross margin despite challenging market conditions.”
The company anticipates current-quarter revenue to be in the range of $1.68 billion and $1.78 billion, while the consensus estimate compiled by Visible Alpha was for $1.8 billion.
Onsemi shares were up 3.9% at $70.69 as of 12:40 p.m. ET Monday. Despite Monday’s advance, shares of Onsemi have lost about 15% year to date.
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