Examining the Future: ON Semiconductor's Earnings Outlook

ON Semiconductor ON is set to give its latest quarterly earnings report on Monday, 2025-05-05. Here's what investors need to know before the announcement.

Analysts estimate that ON Semiconductor will report an earnings per share (EPS) of $0.51.

Investors in ON Semiconductor are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS missed by $0.02, leading to a 1.89% increase in the share price on the subsequent day.

Here's a look at ON Semiconductor's past performance and the resulting price change:

Market Performance of ON Semiconductor's Stock

Shares of ON Semiconductor were trading at $39.6 as of May 01. Over the last 52-week period, shares are down 41.0%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about ON Semiconductor

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on ON Semiconductor.

A total of 27 analyst ratings have been received for ON Semiconductor, with the consensus rating being Neutral. The average one-year price target stands at $57.15, suggesting a potential 44.32% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of GLOBALFOUNDRIES, First Solar and Astera Labs, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for GLOBALFOUNDRIES, with an average 1-year price target of $44.83, suggesting a potential 13.21% upside.
• Analysts currently favor an Outperform trajectory for First Solar, with an average 1-year price target of $224.65, suggesting a potential 467.3% upside.
• Analysts currently favor an Buy trajectory for Astera Labs, with an average 1-year price target of $109.4, suggesting a potential 176.26% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for GLOBALFOUNDRIES, First Solar and Astera Labs, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

ON Semiconductor is positioned in the middle among its peers for Consensus rating. It ranks at the bottom for Revenue Growth. In terms of Gross Profit, ON Semiconductor is at the top among its peers. For Return on Equity, ON Semiconductor is positioned in the middle compared to its peers.

Unveiling the Story Behind ON Semiconductor

Onsemi is a supplier of power semiconductors and sensors focused on the automotive and industrial markets. Onsemi is the second-largest power chipmaker in the world and the largest supplier of image sensors to the automotive market. While the firm used to be highly vertically integrated, it now pursues a hybrid manufacturing strategy for flexible capacity. Onsemi is pivoting to focus on emerging applications like electric vehicles, autonomous vehicles, industrial automation, and renewable energy.

Breaking Down ON Semiconductor's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining ON Semiconductor's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -14.65% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: ON Semiconductor's net margin excels beyond industry benchmarks, reaching 22.06%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): ON Semiconductor's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.37%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 2.71%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: ON Semiconductor's debt-to-equity ratio surpasses industry norms, standing at 0.38. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for ON Semiconductor visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.