The 10-second takeaway
For the quarter ended June 28 (Q2), ON Semiconductor met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins were steady, net margins expanded.
ON Semiconductor recorded revenue of $688.3 million. The 19 analysts polled by S&P Capital IQ expected net sales of $696.2 million on the same basis. GAAP reported sales were 7.6% lower than the prior-year quarter's $744.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.13. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.13 for Q2 were 7.1% lower than the prior-year quarter's $0.14 per share. GAAP EPS of $0.11 for Q2 were 450% higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 33.7%, 100 basis points worse than the prior-year quarter. Operating margin was 8.3%, much about the same as the prior-year quarter. Net margin was 6.9%, 600 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $734.1 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.83 billion. The average EPS estimate is $0.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 476 members out of 492 rating the stock outperform, and 16 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give ON Semiconductor a green thumbs-up, and three 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 $10.03.
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