ON Semiconductor Earnings: Here’s Why Investors are Selling Shares Now

ON Semiconductor Corp. (NASDAQ:ONNN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.21%.

ON Semiconductor Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.14% to $0.13 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 7.59% to $688.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ON Semiconductor Corp. reported adjusted EPS income of $0.13 per share. By that measure, the company met the mean analyst estimate of $0.13. It missed the average revenue estimate of $696.1 million.

Quoting Management: “Our design win momentum across our targeted growth segments of wireless communications, automotive and white goods remains strong, and our investments in these end-markets are yielding positive results,” said Keith Jackson, president and CEO of ON Semiconductor. “Although a few end-markets and geographies are relatively weak, we are optimistic about our outlook based on the strength of our design wins.”

Key Stats (on next page)…

Revenue increased 4.13% from $661 million in the previous quarter. EPS increased 30% from $0.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.17 and has not changed. For the current year, the average estimate has moved up from a profit of $0.56 to a profit of $0.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)