/ON%20Semiconductor%20Corp_%20sign%20in%20Silicon%20Valley-by%20Sundry%20Photography%20via%20Shutterstock.jpg)
Scottsdale, Arizona-based ON Semiconductor Corporation (ON) provides intelligent sensing and power solutions supplying analog, standard logic, and discrete semiconductors. Valued at $14.7 billion by market cap, the company offers products including integrated circuits and analog ICs, as well as a variety of surface mount and standard packages. The leading semiconductor manufacturer is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Monday, May 5.
Ahead of the event, analysts expect ON to report a profit of $0.51 per share on a diluted basis, down 52.8% from $1.08 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect ON to report EPS of $2.49, down 37.4% from $3.98 in fiscal 2024. However, its EPS is expected to rise 43.8% year over year to $3.58 in fiscal 2026.
ON stock has considerably underperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares down 41.6% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) marginal dip over the same time frame.
ON is facing challenges due to the recent 34% tariff imposed by China on all U.S. imports. This has caused a drop in the company's stock as the chipmaker heavily relies on demand from China. The new tariffs not only threaten profit margins but also risk reducing market share. Additionally, there is uncertainty surrounding potential regulatory actions against the semiconductor sector by the Trump administration. Despite being excluded from broad tariffs unveiled on Apr. 2, semiconductor firms still face the possibility of targeted restrictions in the future.
On Feb. 10, ON shares closed down more than 8% after reporting its Q4 results. Its adjusted EPS of $0.95 fell short of Wall Street expectations of $0.98. The company’s revenue was $1.7 billion, missing Wall Street forecasts of $1.8 billion. For Q1, ON expects its adjusted EPS to range from $0.45 to $0.55, and expects revenue to be between $1.4 billion and $1.5 billion.
Analysts’ consensus opinion on ON stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 30 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 12 give a “Hold,” one advocates a “Moderate Sell,” and one recommends a “Strong Sell.” ON’s average analyst price target is $57.36, indicating an ambitious potential upside of 61.8% from the current levels.
On the date of publication, Neha Panjwani 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.
