On Semi Rises on Solid Q2 Results, Outlook
On Semiconductor (ON:US) shares rose on Monday after the semiconductor device company reported second-quarter results that beat analyst expectations and offered a third-quarter outlook that also came ahead of expectations.
For Q2, the company reported a nearly flat revenue of $2.09 billion, topping analyst expectations of $2.02 billion. The company’s adjusted EPS of $1.29 came in ahead of the consensus of $1.21.
R&D expenses were $145.3 million, helping the chip business to top adjusted gross margin expectations – 47.4% vs 46.4%.
“onsemi delivered another excellent quarter, ahead of guidance on revenue and earnings per share, driven by growth in automotive and industrial. Our operational excellence and winning formula have proven to be the right strategy in sustaining our financial performance amid a soft macroeconomic environment,” said Hassane El-Khoury, president and chief executive officer, onsemi.
For this quarter, the company sees adjusted EPS in the range of $1.21 to $1.35, beating the consensus of $1.20. Revenue of $2.15 billion, also topped analyst expectations. The adjusted gross margin is seen falling to 46.9%, but came in still ahead of expectations of 46.2%.
Congresswoman Susie Lee and her colleague Ro Khanna were both selling ON shares this year. The stock is up more than 70% year-to-date.
