onsemi Reports Third Quarter 2024 Financial Results Exceeding Expectations
Intellectia.AI2024-10-28
onsemi Reports Third Quarter 2024 Financial Results Exceeding Expectations
onsemi (NASDAQ: ON) has released its financial results for the third quarter of 2024, showcasing strong performance beyond Wall Street's expectations.
Key Financial Metrics
| Metric | Q3 2024 | Consensus Estimate |
|---|---|---|
| Revenue | $1,761.9 million | $1.75 billion |
| GAAP EPS | $0.93 | - |
| Non-GAAP EPS | $0.99 | $0.97 |
Financially, onsemi reported revenue of $1.7619 billion, surpassing the consensus estimate of $1.75 billion. The company's non-GAAP earnings per share were $0.99, exceeding the expected $0.97. These results reflect effective strategic execution and robust demand in key markets, particularly automotive and industrial sectors.
Key Developments and Operational Highlights
- Free cash flow increased by 41% sequentially.
- onsemi returned 75% of free cash flow over the last 12 months to shareholders through stock repurchases.
Executive Commentary
Hassane El-Khoury, the President and CEO of onsemi, stated, "With third-quarter results above expectations, we remain focused on delivering consistent results in the current environment through execution and prudent financial management." He emphasized onsemi's commitment to investing across the entire power spectrum to strengthen its position in key markets like automotive, industrial, and AI data centers.
Dividends and Share Repurchase Program
onsemi continued its proactive shareholder return strategy by allocating 75% of free cash flow to stock repurchases over the past year, reflecting a commitment to enhance shareholder value.
Forward Guidance
The company has provided a fourth-quarter 2024 outlook included in their webcast announcement, however, the specific numbers have not been detailed in this summary excerpt.
Stock Price Movement
Following the earnings release, onsemi's stock experienced a positive movement, gaining approximately 0.98%.
Overall, onsemi's strong financial performance in Q3 2024 highlights its strategic focus and operational efficiency in navigating market challenges and leveraging growth opportunities in high-demand sectors.
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