What happened

Shares of ON Semiconductor (NASDAQ:ON) jumped 14.2% in the month of August, according to data provided by S&P Global Market Intelligence, after power-efficient semiconductor solutions company announced strong second-quarter 2017 results. ON Semiconductor stock jumped more than 8% on Aug. 7, 2017 alone -- the first trading day after its quarterly results were released.

More specifically, ON's revenue last quarter climbed 52% year over year to $1.338 billion -- well above the company's previous guidance for a range of $1.285 billion to $1.335 billion -- with growth largely driven by the company's $2.4 billion acquisition of Fairchild Semiconductor late last year. ON's gross margin of 36.7% also arrived ahead of expectations for a range of 34.5% to 36.4%.

On the bottom line, that translated to 274% growth in net income attributable to the company, to $93.9 million, and 267% growth in earnings per share to $0.22, with growth driven by ON's increased scale and cost synergies stemming from the acquisition.

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So what

"Along with expansion in our margins, our revenue momentum remains strong, driven by strengthening customer engagement for power, analog and sensor semiconductor solutions," elaborated ON Semiconductor CEO Keith Jackson. "Customers are increasingly relying on us as a provider of enabling technologies for automotive, industrial and communications applications."

Furthermore, Jackson stated that ON's strong margin expansion and free cash flow of $264.2 million during the quarter "clearly demonstrate the strength of our operating model."

Now what

Looking to the third quarter, ON Semiconductor anticipates revenue will arrive in the range of $1.34 billion to $1.39 billion -- up from roughly $951 million in the same year-ago period -- with gross margin remaining steady in the range of 36% to 38%.

All things considered, there was nothing not to like about ON Semiconductor's performance from an investor's perspective. The company is capitalizing on the burgeoning connected-device market, the growth of which has no end in sight. And even with shares hovering near fresh multiyear highs today, I think ON Semiconductor stock has more room to rise from here.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.