Onsemi's Shares Plummet as Sales Soften and Weak Outlook Persists
Originally Published 2 years ago — by Investopedia
Onsemi shares plunged over 18% after the chipmaker provided weaker-than-expected guidance due to softened sales and a decline in operating margin. The company reported third-quarter earnings per share of $1.39, down from $1.45 a year ago, with revenue declining 0.5% to $2.18 billion. Sales slumped in its Analog Solutions Group and Intelligent Sensing Group, while they increased in its Power Solutions Group. CEO Hassane El-Khoury cited risks from higher interest rates and tensions between the U.S. and China as contributing factors to the company's challenges.