ON Semiconductor Corporation Reports Third Quarter 2024 Financial Results
Intellectia.AI
ON Semiconductor Corporation (onsemi) has reported its financial results for the third quarter ending September 27, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $1.762 Billion | $2.181 Billion | -19% | $1.75 Billion |
| Earnings Per Share (EPS) | $0.97 | Not provided | Not provided | $0.97 |
The company posted a total revenue of $1.762 billion for the quarter, slightly exceeding the consensus estimate of $1.75 billion. This figure represents a 19% year-over-year decrease compared to the $2.181 billion generated in Q3 2023. However, the company's earnings per share met the consensus estimate at $0.97. The performance emphasizes a contraction due to declining demand in various segments.
Revenue Performance by Segment
| Segment | YoY Change |
|---|---|
| Power Solutions Group (PSG) | -23% |
| Analog and Mixed-Signal Group (AMG) | -16% |
| Intelligent Sensing Group (ISG) | -15% |
While specific revenue figures were not provided, PSG experienced a 23% decrease, AMG a 16% decrease, and ISG a 15% decrease year-over-year. The decline in PSG and AMG revenues is attributable to reduced demand in the automotive and industrial markets, whereas ISG was affected by lower sales in the industrial and consumer solutions division.
Key Developments and Operational Highlights
- 2024 Business Realignment :
- Realignment efforts resulted in charges of $70.1 million in severance and related costs.
- Approximately 1,300 employees were affected, including terminations and relocations.
- Share Repurchase Program :
- Approximately 2.8 million shares repurchased totaling $200.4 million.
Comments from Company Officers
Company executives reiterated their commitment to supply chain optimization and highlighted ongoing strategic realignments to maximize efficiencies. The focus remains on high-growth megatrends in automotive and industrial markets, balancing growth with margin stability.
Dividends and Share Repurchase Program
The company actively engaged in its share repurchase program, decreasing outstanding shares and underscoring confidence in strategic goals and financial health.
Forward Guidance
The company did not provide specific forward guidance for the next quarter. However, management continues to focus on maintaining margins and aligning production with market demands.
Stock Price Movement
Following the earnings release, the stock saw an increase of approximately 1.17%, reflecting investor response to meeting consensus expectations and confidence in strategic initiatives.
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