ON Semiconductor | In search of Alpha

ON Semiconductor (ON) Q3 topline income surges 26% Y/Y to $2.2B, beating consensus by $80M.

GAAP and non-GAAP gross margin of 48.3% and 49.3%, respectively.

GAAP working margin of 19.4%. Report non-GAAP working margin of 35.4% elevated ~ 1,100 bps Y/Y.

GAAP EPS of $0.70, flat vs. final yr. Report non-GAAP EPS of $1.45 as in comparison with $0.87, beats consensus by $0.14.

Free money movement of $731M and document LTM free money movement margin of 21.0%.

This fall Outlook: Income within the vary of $2.01B to $2.14B vs. consensus of $2.08B; Adjusted EPS within the vary of $1.18 to $1.34 vs. consensus of $1.25.

“onsemi has delivered one other quarter of document outcomes stemming from continued progress in our focus markets of automotive and industrial. We stay assured in our long-term outlook as we proceed to win the place semiconductor content material progress is accelerating for automobile electrification, power infrastructure, superior security and manufacturing unit automation. Now we have taken a proactive and deliberate strategy over the past a number of quarters to make the structural modifications required to strengthen our enterprise, and we’re in a greater place than ever to navigate the present uncertainty available in the market,” mentioned Hassane El-Khoury, president and CEO of onsemi.

Inventory has a SA Authors score of Maintain with commentary that claims: ‘ON Semiconductor: Automotive Market Is Booming’

Promote facet score of Purchase with goal value of $74.83; Quant score of Robust Purchase with highest grades given to profitability and momentum.

Beforehand (Oct. 31): ON Semiconductor Non-GAAP EPS of $1.45 beats by $0.14, income of $2.2B beats by $80M