Overview of Earnings Report
ON Semiconductor Corp (NASDAQ: ON) stock reported a 4.1% year-on-year revenue decline to $2.02 billion for the fourth quarter of FY23, which exceeded the consensus of $2.00 billion.
Despite the revenue decline, the adjusted EPS of $1.25 surpassed the consensus of $1.21, leading to a climb in the stock price after the quarterly results.
The report revealed that the revenue from its Power Solutions Group (PSG) grew 4% to $1.09 billion, while the Advanced Solutions Group (ASG) and Intelligent Sensing Group (ISG) experienced declines of 11% and 13% respectively.
Furthermore, the gross margin declined by 170 basis points to 46.7%, and the adjusted operating margin decreased by 250 basis points to 31.6%.
ON Semiconductor generated $220.7 million in free cash flow and held $2.48 billion in cash and equivalents.
CEO’s Comment and Outlook
Commenting on the results, CEO Hassane El-Khoury stated, “Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue. Looking ahead, we are driving innovation beyond silicon and silicon carbide with our upcoming analog and mixed signal platform to further our leadership in intelligent power and sensing solutions.”
Outlook: ON Semiconductor expects first-quarter adjusted revenue of $1.80 billion to $1.90 billion, below the consensus of $1.92 billion. The company also sees adjusted EPS of $0.98 to $1.10 versus the consensus of $1.10.
Stock Performance
In response to the earnings report, ON shares were trading higher by 8.5% at $76.86 at the last check on Monday.