ON Semiconductor Earnings: Here’s Why the Stock is Down Now

ON Semiconductor Corp. (NASDAQ:ONNN) delivered a profit and beat Wall Street’s expectations, BUT 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 2.65%.

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ON Semiconductor Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.67% to $0.10 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Decreased 11.2% to $661 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ON Semiconductor Corp. reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.08. It missed the average revenue estimate of $665.69 million.

Quoting Management: “We have seen steady improvement in order trends throughout the March quarter, and we expect this trend to continue,” said Keith Jackson, president and CEO of ON Semiconductor. “Design win momentum remains strong, specifically in our wireless communication, automotive and white goods end markets. With our current design win activity, we are well positioned to benefit from an improving demand environment.”

Key Stats (on next page)…

Revenue decreased 2.82% from $680.2 million in the previous quarter. EPS increased 25% from $0.08 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.12. For the current year, the average estimate has moved up from a profit of $0.51 to a profit of $0.54 over the last ninety days.

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