Analog chips maker onsemi (NASDAQ:ON) will be reporting earnings this Monday before the bell. Here’s what you need to know.
onsemi beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $1.45 billion, down 22.4% year on year. It was an exceptional quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts’ EPS 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 16.4% year on year to $1.45 billion, in line with the 17.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
The majority of analysts covering the company have 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 0.6% on average.
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. Impinj’s revenues decreased 4.5% year on year, beating analysts’ expectations by 4.3%, and Universal Display reported revenues up 8.4%, topping estimates by 6.1%. Impinj traded up 26.2% following the results while Universal Display’s stock price was unchanged.
Read our full analysis of Impinj’s results here and Universal Display’s results here.
Investors in the analog semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. onsemi is up 3% during the same time and is heading into earnings with an average analyst price target of $57.53 (compared to the current share price of $56.25).
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