Chipmaker Onsemi on Monday topped Wall Street's targets for the fourth quarter and guided significantly higher for the current period. ON stock jumped on the news.
The Phoenix-based company earned an adjusted $1.09 a share on sales of $1.85 billion in the December quarter. Analysts expected Onsemi earnings of 94 cents a share on sales of $1.79 billion, according to FactSet. On a year-over-year basis, Onsemi earnings soared 211% while sales rose 28%.
For the current quarter, Onsemi forecast adjusted earnings of $1.04 a share on sales of $1.9 billion. That's based on the midpoint of its guidance. Wall Street had predicted earnings of 82 cents a share on sales of $1.78 billion in the first quarter.
"Outlook for our business remains robust as evidenced by over 60% year-over-year growth in our design win funnel driven by our highly differentiated intelligent power and sensing portfolio," Chief Executive Hassane El-Khoury said in a news release.
Onsemi Focused On Secular Megatrends
Previously known as ON Semiconductor, the company changed its name to Onsemi in August. Onsemi makes power and sensing chips for automotive, industrial and other applications.
The company is focusing on secular megatrends such as electric vehicles, advanced driver-assistance systems, alternative energy, and industrial automation.
On the stock market today, ON stock jumped 8.4% to close at 62.26.
ON Stock Ranks First In Industry Group
Onsemi stock ranks first out of 40 stocks in IBD's semiconductor manufacturers industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 95 out of 99. The best growth stocks have a Composite Rating of 90 or better.
On Aug. 2, ON stock broke out of a 16-week consolidation period at a buy point of 44.69, according to IBD MarketSmith charts. On that day, it reported results for the second quarter of 2021.
It also surged higher after its third-quarter report, leaping 14.4% on Nov. 1. Onsemi shares hit a record high of 71.26 on Jan. 4 before the stock market correction.
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