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ON Semiconductor Corporation (ON), with a market cap of $32.5 billion, is a leading manufacturer in the semiconductor industry. The Scottsdale, Arizona-based company provides a broad range of intelligent sensing and power solutions for automotive, industrial, and mobile markets. It is expected to release its fiscal Q2 earnings results before the market opens on Monday, Jul. 29.
Ahead of this event, analysts expect ON to report a profit of $0.93 per share, down 30.1% from $1.33 per share in the year-ago quarter. However, the company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. The company reported an EPS of $1.08 in the most recent quarter, exceeding the consensus EPS estimate by a 3.9% margin.
For fiscal 2024, analysts expect ON to report EPS of $3.83, down 25.8% from $5.16 in fiscal 2023. However, looking forward to fiscal 2025, analysts project the company to grow 27.2% annually to $4.87.
ON Semiconductor has dropped 27.7% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 23.6% gain and the S&P Semiconductor SPDR's (XSD) 11.7% increase over the same period.
In early February, shares of ON Semiconductor soared 9.5% due to the company exceeding analysts' expectations for both revenue and EPS in Q4, driven by record automotive revenue and significant year-over-year growth in silicon carbide revenue. The achievement of a 4x increase in silicon carbide revenue from FY'22 further boosted investor confidence in the company's growth potential in this sector.
Moreover, the stock surged 4.1% on Apr. 29 after it reported better-than-expected Q1 earnings results. Despite less impressive revenue guidance for the next quarter, the market responded positively to the company's ability to sustain gross margins and significantly improve free cash flow.
Analysts' consensus view on ON Semiconductor stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 28 analysts covering the stock, 15 suggest a "Strong Buy," one advises "Moderate Buy," 10 recommend a "Hold," one has a "Moderate Sell" rating, and one gives a "Strong Sell" rating.
The above consensus is slightly less bullish than three months ago, with no “Strong Sell” ratings on the stock. The average analyst price target for ON is $83.65, suggesting a potential upside of 10.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
