Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ON Semiconductor (NASDAQ: ONNN) fell as much as 10% today after the company reported earnings. It ended the trading day down 5.3%
So what: First-quarter revenue was up 7% to $706.5 million and net income increased slightly to $75.2 million, or $0.17 per share. Analysts had expected revenue of $711.7 million and earnings of $0.15 per share; the miss is why shares dropped today.
Now what: Outlook also wasn't strong, with management seeing revenue of $738 million to $768 million in the second quarter. There are some interesting long-term growth opportunities here, but the pessimism about the next few quarters has to be a concern. I'd like to see momentum improve before jumping in, but if management can pick up the pace later this year there's a lot of growth potential for ON.
