Analog chips maker onsemi (NASDAQ: ON) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.
onsemi missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.72 billion, down 14.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Is onsemi a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting onsemi’s revenue to decline 24.7% year on year to $1.40 billion, a further deceleration from the 4.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. onsemi has missed Wall Street’s revenue estimates twice over the last two years.
Looking at onsemi’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 4.1%, and Impinj reported a revenue decline of 3.3%, topping estimates by 3.7%. Texas Instruments traded up 6.7% following the results while Impinj was also up 16.9%.
Read our full analysis of Texas Instruments’s results here and Impinj’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 18.7% on average over the last month. onsemi is up 19.6% during the same time and is heading into earnings with an average analyst price target of $54.19 (compared to the current share price of $41.95).
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