onsemi beats Q3 earnings, revenue estimates

Investing.com -- onsemi reported third-quarter earnings and revenue that surpassed analyst expectations but provided fourth-quarter revenue guidance below consensus estimates. The semiconductor company's stock rose 1.7% following the announcement.

For the third quarter, onsemi posted adjusted earnings per share of $0.99, beating the analyst estimate of $0.97. Revenue came in at $1.76 billion, slightly above the consensus estimate of $1.75 billion but down 19% YoY.

The company's gross margin improved to 45.5% on a non-GAAP basis, up from 45.3% in the previous quarter. Operating margin also increased to 28.2% from 27.5% sequentially.

Looking ahead, onsemi forecasts fourth-quarter revenue between $1.71 billion and $1.81 billion, with the midpoint of $1.76 billion falling short of the $1.78 billion analyst consensus. The company expects adjusted earnings per share between $0.92 and $1.04 for Q4, compared to the $1.00 consensus estimate.

"With third-quarter results above expectations, we remain focused on delivering consistent results in the current environment through execution and prudent financial management," said Hassane El-Khoury, president and CEO of onsemi.

The company reported that it returned 75% of free cash flow over the last 12 months to shareholders through stock repurchases.

onsemi's Power Solutions Group (PSG) segment saw a 23% YoY decline in revenue to $829.4 million, while the Advanced Solutions Group (AMG) revenue fell 16% YoY to $653.7 million. The Intelligent Sensing Group (ISG) revenue decreased 15% YoY to $278.8 million.