ON Semiconductor beats estimates despite Q1 profit slump

Arizona-based ON Semiconductor Corp (Nasdaq: ON) announced its first-quarter 2019 earnings on Monday before the opening bell.

Revenue inched 1% higher to $1.4 billion, while operating income slipped 3% to $179.4 million. Net attributable earnings slumped 18% to $114.1 million.

Earnings for the quarter fell 13% to 27 cents per diluted share. Adjusted earnings grew 8% to $0.43 per share.

The market expected 40 cents a share in adjusted earnings on a consensus revenue of $1.4 billion. With in-line revenue, ON Semiconductor posted upbeat profit this time.

“Our execution continues to be strong, despite soft business conditions. While we are facing near-term headwinds, key secular drivers powering our business remain intact, and we are well positioned to benefit from increasing semiconductor content in automotive, industrial, and cloud-power applications,” said ON Semiconductor CEO Keith Jackson.

For the upcoming second quarter, ON Semiconductor is expected to post a revenue $1.36-1.41 billion, with gross margin 36.5-37.5%.

“We remain upbeat about our future, and we are making prudent long term investments to strengthen our position in our
strategic markets and to further improve our industry-leading cost structure,” added CEO Jackson.

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