Scottsdale, Arizona-based ON Semiconductor Corporation (ON) provides intelligent sensing and power solutions supplying analog, standard logic, and discrete semiconductors. Valued at $26.7 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 fourth-quarter earnings for 2024 on Monday, Feb. 3.
Ahead of the event, analysts expect ON to report a profit of $0.99 per share on a diluted basis, down 20.8% from $1.25 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ON to report EPS of $4, down 22.5% from $5.16 in fiscal 2023. However, its EPS is expected to rise 9.5% year over year to $4.38 in fiscal 2025.
ON stock has considerably underperformed the S&P 500’s ($SPX) 24.2% gains over the past 52 weeks, with shares down 25.2% during this period. Similarly, it significantly underperformed the Technology Select Sector SPDR Fund’s (XLK)23.9% gains over the same time frame.
ON's underperformance can be attributed to a decline last year, due to weakness in key end markets and high interest rates impacting car sales and production. Additionally, the slowdown in the EV market has affected the company, with management lowering its estimate for silicon carbide chips.
On Oct. 28, ON shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $0.99 surpassed Wall Street expectations of $0.97. The company’s revenue was $1.76 billion, topping Wall Street forecasts of $1.75 billion. For Q4, ON expects its adjusted EPS to range from $0.92 to $1.04, and expects revenue to be between $1.7 billion and $1.8 billion.
Analysts’ consensus opinion on ON stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 31 analysts covering the stock, 17 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 11 give a “Hold,” one advocates a “Moderate Sell,” and one recommends a “Strong Sell.” ON’s average analyst price target is $86.35, indicating a potential upside of 48.1% from the current levels.
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