Categories AlphaGraphs, Earnings, Technology

ON Semiconductor’s Q2 results decline; stock falls on disappointing revenue guidance

ON Semiconductor’s (NASDAQ: ON) bottom and top-line results for the second quarter of 2019 declined from the prior year. While earnings came in line with analysts’ predictions, revenue missed estimates. The company also reported weak guidance for Q3. Shares of ON Semiconductors were down about 7% in the pre-market trading hours.

ON Semiconductor (ON) Q2 2019 earnings results

On a non-GAAP basis, the semiconductor firm earned $0.42 per share on revenue of $1.35 billion, representing a 9% decline in EPS and a 7% decline in revenue. On a GAAP basis, EPS declined 31% year-over-year to $0.24. The market had expected ON to earn $0.42 per share on revenue of $1.38 billion.

“Business conditions continue to be soft, and we expect to see sub-seasonal demand trends in the near-term, as geopolitical factors will likely continue to weigh on demand,” said CEO Keith Jackson.

Related: Intel stock jumps as it surpasses Q2 estimates; Apple to buy its smartphone modem business for $1 billion

Based on product booking trends, backlog levels, and estimated turns levels, the company anticipates 2019 third quarter revenue to be approximately $1.36 billion to $1.41 billion. Gross margin is expected to be 35.2% to 36.2% on a GAAP basis and 36.7% to 37.7% on a non-GAAP basis.

During the second quarter, ON Semiconductor signed a definitive agreement to acquire, in a phased transaction, a 300mm fab located at East Fishkill, NY and related assets from GLOBALFOUNDRIES. The company also closed its previously announced acquisition of Quantenna Communications, a provideer of connectivity semiconductor solutions for Wi-Fi, in the second quarter.

ON stock had gained 21% since the beginning of 2019, while it had dropped 7% in the trailing 12 months.

Also Read:  iRobot Corp. (IRBT) Q3 2020 Earnings Call Transcript

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Infographic: Seagate Technology (STX) Q1 earnings drop but beat view

Seagate Technology plc (NASDAQ: STX), a leading provider of data storage solutions, Thursday said its earnings declined in the first quarter of 2021, owing to a 10% fall in revenues.

INTC Earnings: All you need to know about Intel Q3 2020 earnings results

Intel Corporation (NASDAQ: INTC) reported third quarter 2020 earnings results today. Revenue fell 4% year-over-year to $18.3 billion. GAAP net income decreased 29% to $4.3 billion while EPS dropped 25%

AT&T (T) Earnings: Key financials and quarterly highlights

AT&T Inc. (NYSE: T) today reported its third quarter financial results for the period ended September 30, 2020. Net income for the third quarter was $2.8 billion, or $0.39 per

Top