onsemi (ON) Reports Earnings Tomorrow: What To Expect

Analog chips maker onsemi (NASDAQ:ON) will be reporting earnings this Monday before market hours. Here’s what to expect.

onsemi beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.47 billion, down 15.4% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter slightly topping analysts’ expectations but an increase in its inventory levels.

Is onsemi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting onsemi’s revenue to decline 13.9% year on year to $1.52 billion, improving from the 19.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.

Looking at onsemi’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj posted flat year-on-year revenue, beating analysts’ expectations by 3.6%, and Monolithic Power Systems reported revenues up 18.9%, topping estimates by 2%. Impinj traded down 15% following the results while Monolithic Power Systems was also down 7.5%.

Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.

There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 5.6% on average over the last month. onsemi is up 2.5% during the same time and is heading into earnings with an average analyst price target of $58.03 (compared to the current share price of $50.48).

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