ON Semiconductor Stock Shoots Higher On 38% Q2 Revenue Growth, Margin Expansion, Strong Q3 Guidance

ON Semiconductor Corp ON reported second-quarter FY21 revenue growth of 38% year-on-year to $1.67 billion, beating the analyst consensus of $1.62 billion.
Revenue from Power Solutions Group (PSG) grew 37% Y/Y to $846.6 million, Advanced Solutions Group (ASG) increased 42% Y/Y to $607.6 million, and Intelligent Sensing Group (ISG) rose 28% Y/Y to $215.7 million.
The non-GAAP gross margin expanded 760 bps to 38.4%, and the non-GAAP operating margin expanded by 1,220 bps to 19.6%.
Non-GAAP EPS of $0.63 beat the analyst consensus of $0.49.
On Semi generated $488 million in operating cash flow and held $1.1 billion in cash and equivalents.
The company continues to see accelerating demand for its products in strategic automotive and industrial end markets.
Outlook: On Semi expects incremental supply and revenue growth in the second half of 2021. It sees Q3 revenue of $1.66 billion $1.76 billion, above the analyst consensus of $1.61 billion.
It sees non-GAAP EPS of $0.68 to $0.80, above the analyst consensus of $0.51.
Price action: ON shares traded higher by 13.5% at $44.32 in the market session on the last check Monday.

Momentum11.25

Growth17.97

Quality58.05

Value66.35

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