ON Semiconductor ON reported third-quarter 2024 non-GAAP earnings of 99 cents per share, which outpaced the Zacks Consensus Estimate by 2.06% but declined 28.8% year over year.

Revenues of $1.76 billion beat the Zacks Consensus Estimate by 0.7% but declined 19.2% on a year-over-year basis. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The stock has gained 9% year to date compared with the Zacks Computer & Technology sector’s growth of 48.3%. We believe the raised guidance will help ON stock to recover.

ON Semiconductor Corporation Price, Consensus and EPS Surprise

ON Semiconductor Corporation price-consensus-eps-surprise-chart | ON Semiconductor Corporation Quote

ON’s Top-Line Details

Power Solutions Group revenues of $829.4 million (contributed 47.1% to revenues) fell 23% year over year. The figure missed the Zacks Consensus Estimate by 1.45%.

Analog & Mixed Group revenues of $653.7 million (37.1% of revenues) declined 15.7% on a year-over-year basis. The figure beat the consensus mark by 0.71%.

Intelligent Sensing Group revenues of $278.8 million (15.8% of revenues) fell 15.2% year over year. The figure beat the consensus mark by 7.46%.

In terms of end markets, Automotive (54% of revenues) revenues were $951.2 million, down 17.8% year over year. The figure beat the Zacks Consensus Estimate by 2.16%.

Industrial (25% of revenues) end-market (including military, aerospace and medical) revenues declined 28.6% year over year to $440 million. The figure missed the consensus mark by 5.39%.

Others (21% of revenues) end-market revenues declined 8.9% year over year to $371 million. The figure beat the consensus mark by 4.47%.

In the third quarter, ON Semiconductor introduced EliteSiC M3e MOSFETs, which significantly improve efficiency for power-hungry applications.

ON’s Operating Details

Non-GAAP gross margin contracted 180 basis points (bps) year over year to 45.5%. 

Non-GAAP operating expenses decreased 5.5% year over year to $304.5 million.

Non-GAAP operating margin was 28.2%, down 440 bps on a year-over-year basis.

ON’s Balance Sheet & Cash Flow

As of Sept. 27, 2024, onsemi had cash and cash equivalents of $2.47 billion compared with $2.23 billion as of June 28, 2024. 

Total debt (including the current portion), as of Sept. 27, 2024, was $3.34 billion, unchanged sequentially.

Third-quarter 2024 cash flow from operations amounted to $465.8 million compared with the previous quarter’s reported figure of $362.2 million.

Free cash flow amounted to $293.6 million compared with free cash flow of $207.7 million in the previous quarter.