Key Takeaways
- ON Semiconductor, or Onsemi, posted worse-than-expected results and guidance as it continued to face difficult market conditions.
- The maker of power chips reported a sales decline in all three of its divisions.
- Onsemi said the 2025 business outlook “remains uncertain.”
Shares of ON Semiconductor (ON), also known as Onsemi, sank more than 6% Monday after the maker of power chips missed profit, sales, and guidance estimates as it said it faced difficult macroeconomic conditions.
The company posted fourth-quarter adjusted earnings per share (EPS) of $0.95, with revenue slumping nearly 15% year-over-year to $1.72 billion. Both were short of Visible Alpha forecasts.
Sales at the Power Solutions Group fell 16% to $809.4 million. They were down 18% to $610.6 million at the Analog and Mixed-Signal Group, and they declined less than 2% to $302.5 million at the Intelligent Sensing Group.
CEO Says Onsemi Committed to Long-Term Strategy
CEO Hassane El-Khoury said Onsemi continues “to navigate this market downturn,” and that “while 2025 remains uncertain,” the company is committed to its long-term strategy.
Onsemi predicted current-quarter adjusted EPS of $0.45 to $0.55, and revenue of $1.35 billion to $1.45 billion. Analysts surveyed by Visible Alpha were looking for $0.88 and $1.68 billion, respectively.
ON Semiconductor shares slid roughly 6.5% Monday morning to their lowest level since June 2022.
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