onsemi (ON) to Report Q4 Earnings: What's in the Cards?
On Semiconductor ON is slated to release its fourth-quarter 2023 results on Feb 5.
For fourth-quarter 2023, onsemi expects revenues between $1.95 billion and $2.05 billion. Earnings are expected in the range of $1.13-$1.27 per share.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.21 per share, unchanged in the past 30 days. The metric indicates a decline of 8.33% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $2 billion, suggesting a decline of 4.83% from the year-ago quarter’s reported figure.
ON Semiconductor Corporation Price and EPS Surprise
ON Semiconductor Corporation price-eps-surprise | ON Semiconductor Corporation Quote
onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.73%.
Let us see how things are shaping up prior to this announcement.
Factors Likely to Have Influenced Q4 Performance
onsemi’s fourth-quarter performance is likely to have benefited from the increased adoption of its products in automotive and industrial end markets, particularly in areas such as electric vehicles (EVs), advanced driver-assistance systems (ADAS) and energy infrastructure.
The momentum in the silicon carbide segment, owing to its strong market position, is anticipated to have driven onsemi's top line in the to-be-reported quarter.
onsemi's strength across EliteSIC modules, which increase efficiency and lower the weight of the traction inverters to expand electric vehicle range, is likely to have driven its fourth-quarter top line.
In the to-be-reported quarter, onsemi expects substantial top-line growth driven by the innovative Hyperlux Family sensors for automotive and industrial applications, featuring low power consumption and 8-megapixel resolution.
However, ON Semiconductor's fourth-quarter top line is expected to have been affected by softness in European automotive demand and reduced silicon carbide shipments due to lower demand.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
onsemi has an Earnings ESP of -0.46% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform META has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares are up 25.9% in the past six months.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 13% in the past six months.
Bill Holdings BILL has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 36.2% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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