ON Earnings Prediction
The chart below shows how ON performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ON sees a +2.52% change in stock price 10 days leading up to the earnings, and a +1.21% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
ON Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.72B
-14.65%
-2.24%
Gross Margin
44.45%
-3.52%
-0.40%
Operating Margin
25.52%
-17.41%
-5.24%
Net Margin
22.05%
-21.02%
-3.54%
EPS
0.88
-31.25%
-5.38%
No Data Available
ON Earnings Analysis
ON Semiconductor Corp Corporation (ON.O) Earnings Conference Call
Positive
Strong Operational Efficiency: Non-GAAP gross margin of 45.5% achieved against revenue of $7.1 billion for the full year 2024, demonstrating strong operational efficiency.
Automotive Revenue Surge: Fourth-quarter automotive revenue increased 8% sequentially to $1.03 billion, driven by share gains and new customer ramps, particularly in China.
Silicon Carbide Revenue Surge: Silicon carbide revenue increased sequentially in Q4, resulting in a 22% increase for the second half of 2024 compared to the first half, indicating strong demand in this segment.
Free Cash Flow Performance: Generated $1.2 billion of free cash flow for the full year, with Q4 free cash flow increasing 39% sequentially to $422 million, representing 25% of revenue.
Shareholder Cash Return: Returned 54% of free cash flow to shareholders in 2024 through share repurchases, totaling approximately $650 million, with $1.7 billion remaining on the repurchase authorization.
Negative
Earnings Miss Reported: ON Semiconductor Corporation misses on earnings expectations with reported EPS of $0.95, below the expected $0.98.
Revenue Decline Overview: Fourth-quarter revenue of $1.72 billion reflects a decline in demand across all end markets, with industrial revenue decreasing 5% sequentially and other business segments declining 24% quarter over quarter.
Gross Margin Decline: GAAP gross margin decreased to 45.2%, down 20 basis points sequentially and 140 basis points from the same quarter a year ago, indicating worsening profitability.
Operating Expenses Increase: Operating expenses increased to $371 million in Q4, up from $330 million in Q4 2023, reflecting rising costs amid declining revenues.
Manufacturing Utilization Decline: Manufacturing utilization dropped to 59% in Q4, leading to underutilization and increased fixed costs, which are expected to negatively impact margins in the near term.
ON FAQs
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ON Earning Call Sentiment
ON Semiconductor Corporation (NASDAQ:ON) Q4 2024 Earnings Call Transcript
ON.O
-0.7%Positive
The earnings call revealed disappointing financial results, including a decline in revenue and gross margin. Despite optimistic guidance and a focus on core growth areas, the Q&A highlighted concerns over demand drops, unclear structural actions, and expected declines in key segments. The refusal to provide specific guidance on costs and demand further adds to the negative sentiment. Additionally, the automotive segment is expected to decline significantly, and the lack of clarity on future performance dampens investor confidence, leading to a negative stock price prediction.
