Analog chips maker onsemi (NASDAQ:ON) will be reporting results this Monday after market close. Here’s what investors should know.
onsemi beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.55 billion, down 12% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is onsemi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting onsemi’s revenue to decline 10.9% year on year to $1.54 billion, improving from the 14.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. onsemi has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at onsemi’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Skyworks Solutions’s revenues decreased 3.1% year on year, beating analysts’ expectations by 3.4%, and Power Integrations reported a revenue decline of 1.9%, in line with consensus estimates. Skyworks Solutions traded up 5.5% following the results while Power Integrations’s stock price was unchanged.
Read our full analysis of Skyworks Solutions’s results here and Power Integrations’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 9.6% on average over the last month. onsemi is up 4.9% during the same time and is heading into earnings with an average analyst price target of $63.50 (compared to the current share price of $65.26).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
/Microsoft%20Corporation%20logo%20on%20phone-by%20rafapress%20via%20Shuterstock.jpg)