Analog chips maker onsemi (NASDAQ: ON) will be announcing earnings results this Monday after the bell. Here’s what investors should know.
onsemi beat analysts’ revenue expectations last quarter, reporting revenues of $1.51 billion, up 4.7% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter beating analysts’ expectations.
Is onsemi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting onsemi’s revenue to grow 8.2% year on year, a reversal from the 15.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. onsemi has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at onsemi’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monolithic Power Systems delivered year-on-year revenue growth of 47.6%, beating analysts’ expectations by 8.6%, and Impinj reported revenues up 10.7%, topping estimates by 3.5%. Monolithic Power Systems traded up 8.3% following the results while Impinj was also up 5.9%.
Read our full analysis of Monolithic Power Systems’s results here and Impinj’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the analog semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 12.7% on average over the last month. onsemi is down 14.2% during the same time and is heading into earnings with an average analyst price target of $113.12 (compared to the current share price of $81.34).
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