ON Semiconductor stock pops despite lackluster Q1 guidance
ON Semiconductor (ON) shares are popping off after reporting fourth-quarter earnings results in line with estimates, seeing year-over-year revenue declines. The semiconductor company shared disappointing first-quarter guidance.
Yahoo Finance Live takes a closer look at the stock.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
[AUDIO LOGO]
AKIKO FUJITA: Well, let's take a look at our trending ticker. Shares of ON Semiconductor rising despite reporting a forecast below Wall Street expectations. The chipmaker was in line with expectations in fourth quarter, with earnings per share of $1.25 from sales of $2 billion. We're seeing the stock surging, Rachelle, up more than 8%. So much of this points to the expectations game with earnings here because this was not a stellar report for the semiconductor supplier here. We're talking a year over year decline of 3.8% when it comes to revenue as well.
RACHELLE AKUFFO: It's true. When you consider their role for people who aren't familiar with the company, they make power and sensor chips for automotive and industrial markets as well. And they had been benefiting from this push for electrification and for some of these sustainable safety grids, but it's also some of these areas that we've also seen a pullback in demand on.
So interesting I think, as you say, they're really basing it on expectations because as you look at the performance over the last year and over the last year, down more than 1%. But so, as you can see, it's been a volatile few years, especially for the electrical industry here.
AKIKO FUJITA: Yeah. Outlook also coming in a little lower here. Revenue outlook now at adjusted earnings for the first quarter expected to be at $0.98 versus-- or to $1.10 a share. So maybe pretty much in line, but not really on the stronger end.
RACHELLE AKUFFO: Indeed. I'm seeing the phrase better than feared coming up a lot in these analysts notes.
