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onsemi (ON) to Report Q2 Earnings: What's in the Cards?

·3 min read

onsemi ON is slated to release second-quarter 2022 results on Aug 1.

For the second quarter, onsemi expects revenues between $1.97 billion and $2.07 billion. Earnings are expected in the range of $1.20 to $1.32 per share.

For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.26 per share, unchanged in the past 30 days. The figure indicates a surge of 100% from the year-ago quarter.

The consensus mark for revenues stands at $2.02 billion, suggesting an improvement of 20.71% from the year-ago quarter.

onsemi’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.57%.

ON Semiconductor Corporation Price and EPS Surprise

ON Semiconductor Corporation Price and EPS Surprise
ON Semiconductor Corporation Price and EPS Surprise

ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote

Factors to Note

onsemi’s second-quarter performance is likely to have benefited from key megatrends such as electric vehicles (EV), advanced driver assistance systems (ADAS), energy infrastructure and factory automation, which have been experiencing rising demand.

The company’s selective investments to expand gross profit at favorable margins might have contributed to the second quarter revenues. Manufacturing efficiencies, reallocation of capacity to strategic and high-margin products to drive favorable mix shift, and continued elimination of price-to-value discrepancies may have driven higher margin performance in the to-be-reported quarter.

The company’s expanding portfolio of highly differentiated intelligent power and sensing products has been attracting new customers who have been signing long-term agreements with the company. This is likely to have driven second-quarter revenues, earnings and free cash flow growth.

In second-quarter 2022, the energy infrastructure market is expected to have favored the top-line growth of onsemi, as utility-scale power plant installations have increased worldwide to reduce the climate impact of fossil fuel-based power plants.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.

onsemi has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Aspen Technology AZPN has an Earnings ESP of +1.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen’s shares have returned 19% in the year-to-date period against the Zacks Internet - Software industry’s decline of 49.7%.

Arrow Electronics ARW has an Earnings ESP of +2.44% and a Zacks Rank #1.

ARW’s shares have fallen 8.3% in the year-to-date period compared with the Zacks Electronics - Parts Distribution industry’s decline of 7.5%.

Ballard Power Systems BLDP has an Earnings ESP of +2.04% and a Zacks Rank #3.

Ballard’s shares have fallen 45.75% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Components industry’s decline of 23.4%.

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Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
Ballard Power Systems, Inc. (BLDP) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
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