ON Semiconductor (ON) reported a 65% jump in earnings for the second quarter as increasing demand for its products drove revenue higher as well as robust margin expansion. The top and bottom line came in above analysts’ expectations. The semiconductor components maker’s stock rose more than 3% in the premarket after guiding third-quarter revenue above Street’s view. However, the stock lost its momentum and was trading in red after the market opened.
Net income attributable to the company jumped 65% to $155.3 million and EPS soared 59% to $0.35. Adjusted EPS climbed 28% to $0.46. Revenue increased 9% to $1.46 billion.
Looking ahead into the third quarter, the company projects revenue of about $1.485 billion to $1.535 billion. The revenue estimate is based on product booking trends, backlog levels and estimated turns levels. This outlook includes anticipated stock-based compensation expense of about $19-21 million. Net cash paid for income taxes is predicted to be $11-15 million.
Looking ahead into the third quarter, the company projects revenue of about $1.485 billion to $1.535 billion
ON Semiconductor predicts the gross margin of 38-39% on a GAAP basis and 38.1-39.1% on a non-GAAP basis for the third quarter of 2018. Operating expenses are anticipated to be $348 million to $366 million and non-GAAP operating expenses are expected to be $319 million to $333 million.
Shares of ON Semiconductor ended Friday’s regular trading session down 1.95% at $23.15 on the Nasdaq. The stock had been trading between $14.60 and $27.10 for the past 52 weeks.