The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ON Semiconductor beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
ON Semiconductor booked revenue of $767.9 million. The 19 analysts polled by S&P Capital IQ wanted to see sales of $759.0 million. GAAP sales were 33% higher than the prior-year quarter's $579.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.13. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share on the same basis. GAAP EPS were -$0.02 for Q4 against $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 1,000 basis points worse than the prior-year quarter. Operating margin was 6.6%, 1,080 basis points worse than the prior-year quarter. Net margin was -1.1%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $758.3 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $3.30 billion. The average EPS estimate is $0.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ON Semiconductor is outperform, with an average price target of $8.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.