The 10-second takeaway
For the quarter ended March 29 (Q1), ON Semiconductor met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share shrank.
Margins shrank across the board.
ON Semiconductor booked revenue of $661.0 million. The 21 analysts polled by S&P Capital IQ hoped for a top line of $665.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $744.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. Non-GAAP EPS of $0.10 for Q1 were 17% lower than the prior-year quarter's $0.12 per share. GAAP EPS of $0.05 for Q1 were 17% lower than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.9%, 200 basis points worse than the prior-year quarter. Operating margin was 4.8%, 260 basis points worse than the prior-year quarter. Net margin was 3.4%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $702.1 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $2.86 billion. The average EPS estimate is $0.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 474 members out of 490 rating the stock outperform, and 16 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give ON Semiconductor a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ON Semiconductor is outperform, with an average price target of $10.09.
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