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Replies to post #64 on On Semiconductor (ON)
ON Semiconductor upgraded at Morgan Stanley after earnings strength
Aug. 03, 2021 8:13 AM ETON Semiconductor Corporation (ON)ON Semiconductor Corporation (ON)By: Brandy Betz, SA News Editor
ON Semiconductor (NASDAQ:ON) reported strong second-quarter earnings yesterday with upside guidance, prompting an upgrade at Morgan Stanley from Underweight to Equal Weight.
Analyst Joseph Moore says the company "reported the strongest results out of all of the broad based suppliers in our coverage."
Moore sees ON's portfolio optimization efforts driving continued "strong fundamental performance."
The analyst is sticking to the sidelines because the company's gross margin improvement is likely at least partially due to cyclical elements.
Morgan Stanley raises its ON price target by $10 to $42.
ON Semi shares are up 0.6% pre-market to $43.92.
Background: ON Semiconductor pops 10% after Q2 beats amid global chip shortage
ON Semiconductor pops 10% after Q2 beats amid global chip shortage
Aug. 02, 2021 8:51 AM ETON Semiconductor Corporation (ON)ON Semiconductor Corporation (ON)By: Brandy Betz, SA News Editor
ON Semiconductor (NASDAQ:ON) shares surge 9.6% in pre-market trading after the auto chipmaker reported upside second-quarter results with a strong third-quarter forecast despite the ongoing supply chain constraints.
Second quarter sales were up 38% year-over-year to $1.67B, an all-time record and $50M above consensus estimates. Adjusted earnings of $0.63 per share was $0.14 above consensus.
Adjusted gross margin was 38.4% versus the 36.8% consensus.
Record free cash flow of $383.2M was 23% of overall revenue.
“We continue to see accelerating demand for our products in our strategic automotive and industrial end-markets. As we continue to drive operational efficiencies in our manufacturing sites, we expect to see incremental supply and revenue growth in the second half of 2021,” says ON Semiconductor president and CEO Hassane El-Khoury.
For the third quarter, ON expects $1.66 to $1.76 billion in revenue, adjusted EPS of $0.68 to $0.80, adjusted gross margin of 39% to 41% and operating expenses of $305 to $320 million. Analysts expected ON to guide $1.61B in revenue and $0.51 EPS.
Related: Earlier this year, a Biden administration supply chain review recommended a $50B investment in domestic semiconductor production.
Now read: Worldwide semiconductor sales reached ~$134B in Q2, up
