onsemi Reports Third-Quarter Earnings and Revenue

onsemi reported third-quarter earnings and revenue that surpassed analyst expectations but provided fourth-quarter revenue guidance below consensus estimates. The semiconductor company's stock rose 1.7% following the announcement.

Third Quarter Highlights

• Adjusted Earnings Per Share: $0.99 (analyst estimate: $0.97)
• Revenue: $1.76 billion (consensus estimate: $1.75 billion; down 19% YoY)

Margin Improvements

• Gross Margin: 45.5% (up from 45.3% in the previous quarter)
• Operating Margin: 28.2% (up from 27.5% sequentially)

Fourth-Quarter Guidance

onsemi forecasts fourth-quarter revenue between $1.71 billion and $1.81 billion. The midpoint of $1.76 billion falls short of the $1.78 billion analyst consensus. The company expects adjusted earnings per share between $0.92 and $1.04 for Q4 (compared to the $1.00 consensus estimate).

> "With third-quarter results above expectations, we remain focused on delivering consistent results in the current environment through execution and prudent financial management," said Hassane El-Khoury, president and CEO of onsemi.

Shareholder Returns

The company reported it returned 75% of free cash flow over the last 12 months to shareholders through stock repurchases.

Segment Performance

• Power Solutions Group (PSG): Revenue declined 23% YoY to $829.4 million.
• Advanced Solutions Group (AMG): Revenue fell 16% YoY to $653.7 million.
• Intelligent Sensing Group (ISG): Revenue decreased 15% YoY to $278.8 million.