Why ON Semiconductor (ON) Stock Is Plunging Today - ON Semiconductor (NASDAQ:ON)

ON Semiconductor Corp ON reported fourth-quarter FY22 revenue growth of 14% year-on-year to $2.10 billion, beating the consensus of $2.08 billion.
Revenue from Power Solutions Group (PSG) grew 10% Y/Y to $1.05 billion, Advanced Solutions Group (ASG) increased 8% Y/Y to $701 million, and Intelligent Sensing Group (ISG) rose 44% Y/Y to $354.2 million.
The non-GAAP gross margin expanded by 320 bps to 48.4%, and the non-GAAP operating margin expanded by 550 bps to 34.1%.
Non-GAAP EPS of $1.32 beat the consensus of $1.27.
ON Semiconductor generated $389.3 million in free cash flow and held $2.92 billion in cash and equivalents.
Buyback: The board approved a buyback of up to $3 billion through Dec. 31, 2025.
"Revenue for 2022 grew by 24%, non-GAAP gross margin expanded by 880 bps, and non-GAAP operating income grew four times faster than revenue driven by our focus on the secular megatrends of electric vehicles, ADAS, alternative energy and industrial automation. We are focused on our key strategic initiatives such as ramping silicon carbide in support of our long-term supply agreements. Despite the current macroeconomic uncertainty, the long-term outlook for our business remains robust with a 38% year-over-year increase in our design win funnel," CEO Hassane El-Khoury said.
Outlook: ON Semiconductor sees Q1 revenue of $1.87 billion - $1.97 billion, below the consensus of $1.99 billion.
It sees non-GAAP EPS of $1.02 - $1.14 versus the consensus of $1.14.
Price Action: ON shares traded lower by 4.71% at $77.08 premarket on the last check Monday.

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ON Semiconductor Beats Q4, Issues Cautious Q1 Outlook, Launches $3B Buyback