Analog chips maker ON Semiconductor (NASDAQ:ON) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
ON Semiconductor beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.76 billion, down 19.2% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.
Is ON Semiconductor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ON Semiconductor’s revenue to decline 13% year on year to $1.76 billion, a further deceleration from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 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. ON Semiconductor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.
Looking at ON Semiconductor’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Power Integrations delivered year-on-year revenue growth of 17.6%, meeting analysts’ expectations, and Texas Instruments reported a revenue decline of 1.7%, topping estimates by 3.3%. Power Integrations traded down 1.7% following the results while Texas Instruments was also down 7.5%.
Read our full analysis of Power Integrations’s results here and Texas Instruments’s results here.
Investors in the analog semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. ON Semiconductor is down 8.7% during the same time and is heading into earnings with an average analyst price target of $78.63 (compared to the current share price of $51).
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.