ON Semiconductor's stock is rising despite reporting lackluster Q1 guidance and year-over-year revenue declines in its fourth-quarter earnings results, with earnings per share of $1.25 from sales of $2 billion. The company, which makes power and sensor chips for automotive and industrial markets, is facing a pullback in demand despite benefiting from the push for electrification and sustainable safety grids. The stock surged more than 8% following the report, with analysts noting that the performance reflects the expectations game with earnings.
Jim Cramer advises against owning Invesco Mortgage Capital due to uncertainty about their mortgages, suggests waiting for the Fed to cut rates before buying ON Semiconductor, recommends buying Stanley Black & Decker as it is inexpensive, states he needs to do more research on Catalyst Pharmaceuticals, and expresses a lack of enthusiasm for airline stocks ahead of American Airlines' upcoming earnings report.
Tesla stock dropped 4.8% and closed below $200, reaching a 5-month low, despite a broader market rally. Two factors contributed to the decline: Panasonic, Tesla's battery supplier, cut automotive battery production in Japan and lowered its profit forecast due to a global slowdown in EV sales; and chipmaker ON Semiconductor reported weaker-than-expected profit and revenue guidance, potentially indicating a drop in silicon carbide demand used in Tesla's EV powertrain. Tesla shares are down 22% in the past month but still up 60% for the year.
Shares of ON Semiconductor dropped over 21% after the company's third-quarter report exceeded expectations but provided weak guidance for the fourth quarter. The company expects lower earnings and revenue due to macro pressures, including softening demand for cars and weakening demand for electric vehicles. Analysts believe ON Semiconductor's structural improvements will lead to better outcomes in the long run, but caution that the near-term outlook remains challenging.
SoFi Technologies reported a strong third-quarter revenue beat and raised its outlook for the full year, causing its shares to fluctuate. McDonald's beat analyst estimates with strong global same-store sales growth, while General Motors and Stellantis saw slight declines as their autoworkers strike neared an end. Spirit Realty Capital surged after announcing its acquisition by Realty Income, while Western Digital jumped after outperforming expectations in the fiscal first quarter. On Semiconductor's stock plummeted due to underwhelming current-quarter guidance, and Revvity tumbled after offering a weak quarterly report.
ON Semiconductor reported Q3 FY2023 results that beat analysts' expectations with flat year-on-year revenue of $2.18 billion. However, the company's revenue guidance for the next quarter fell short of estimates, coming in at $2 billion. ON Semiconductor's inventory levels have increased, with inventory days outstanding at 165, above its five-year average. The company's revenue growth has been mediocre over the past three years, and this quarter saw a decline of 0.54% year-on-year. Despite the mixed results, ON Semiconductor has a strong financial position and resources to pursue growth opportunities.
ON Semiconductor (ON) reported better-than-expected second-quarter earnings, driven by strong sales of chips for automotive and industrial applications. Automotive chip sales rose 35% YoY, exceeding $1 billion, while industrial chip sales increased 5% to $609.3 million. ON Semiconductor raised its expectations for the current quarter, predicting adjusted earnings of $1.34 a share on sales of $2.15 billion. ON stock surged 4.5% in premarket trading following the report.
The stock market rally showed mixed action last week, with the Nasdaq hitting a 2023 high but ending with slim gains, while the S&P 500 and Dow Jones fell for the week. Tesla and several chip stocks, including ON Semiconductor, Axcelis Technologies, and Aehr Test Systems, are worth watching. Meanwhile, Sarepta Therapeutics' stock was halted throughout Friday's session as an FDA advisory panel discussed whether to recommend Sarepta's gene therapy for patients with Duchenne muscular dystrophy.
ON Semiconductor's shares rose 7% after the chipmaker's quarterly guidance beat Wall Street's expectations, lifting other chip stocks including heavyweight Nvidia, which hit its highest level in over a year. While the mid-point of ON Semiconductor's guidance for quarterly revenue implies a 3% dip from the year-ago quarter, it exceeded analyst expectations for a 7% drop. The Philadelphia Semiconductor index climbed 0.7%, outperforming the Nasdaq's 0.1% rise. Investors will look for additional readings on the health of the chip industry with more players set to report this week.
ON Semiconductor's shares rose 7% after the chipmaker's quarterly guidance beat Wall Street's expectations, lifting other chip stocks including heavyweight Nvidia, which hit its highest level in over a year. While ON Semiconductor's guidance for quarterly revenue implies a 3% dip from the year-ago quarter, it exceeded analyst expectations for a 7% drop. The Philadelphia Semiconductor index climbed 0.7%, outperforming the Nasdaq's 0.1% rise. Investors will look for additional readings on the health of the chip industry with more players set to report this week.
JPMorgan Chase acquired First Republic Bank and most of its assets, causing First Republic shares to be halted and JPMorgan shares to rise 3%. Morgan Stanley upgraded General Motors to overweight, causing the automaker's shares to gain 2%. Norwegian Cruise Line jumped 8% after reporting better-than-expected quarterly results and boosting its full-year profit forecast. Exxon Mobil shares shed 3% after a Goldman Sachs downgrade to neutral. On Semiconductor jumped 7% after beating first-quarter earnings and revenue expectations.
ON Semiconductor reported non-GAAP earnings per share of $1.19, beating expectations by $0.11, and revenue of $1.96 billion, beating expectations by $30 million.
