ON Semiconductor Q2 Earnings: Revenue And EPS Beat, CEO Highlights Automotive Gains, Strong Q3 Outlook

ON Semiconductor Corp (NASDAQ: ON) stock reported a fiscal second-quarter 2024 revenue decline of 17.2% year-on-year to $1.74 billion, beating the analyst consensus estimate of $1.73 billion

The adjusted EPS of $0.96 beat the analyst consensus estimate of $0.92. The stock gained after the print. 

Revenue from Power Solutions Group (PSG) declined 15% year over year to $835.2 million, Analog and Mixed-Signal Group (AMG) decreased 18% year over year to $647.8 million, and Intelligent Sensing Group (ISG) fell 22% year over year to $252.2 million.

The adjusted gross margin declined by 210 bps to 45.3%, and the adjusted operating margin decreased by 530 bps to 27.5%, implying semiconductor industry pricing pressures.

ON Semiconductor generated $207.7 million in free cash flow and held $2.68 billion in cash and equivalents as of June 28, 2024.

Outlook: ON Semiconductor expects third-quarter adjusted revenue of $1.70 billion – $1.80 billion, versus the consensus of $1.73 billion.

The company sees adjusted EPS of $0.91 – $1.03 versus the consensus of $0.92.

Price Action: ON shares are trading higher by 7.84% at $75.67 premarket at the last check on Monday.

Photo via Shutterstock

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