Yahoo Finance ON Semi Jumps Most Since 2022 After Beating Earnings Estimates
(Bloomberg) -- ON Semiconductor Corp.’s shares had their biggest intraday gain in almost two years after the semiconductor maker reported better-than-expected results for the second quarter.
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Adjusted earnings per share for the three months ending June 28 were 96 cents, beating the 92 cents forecast by analysts surveyed by Bloomberg, the Scottsdale, Arizona-based company said in a statement on Monday.
The shares rose as much as 14.1% to $80.05 during New York trading on Monday, marking the stock’s biggest same-day gain since November 10, 2022. The stock has otherwise fallen about 6% this year.
Revenue for the period was $1.74 billion, a slight beat on the average analyst estimate of $1.73 billion.
ON Semi’s results are the latest to illustrate how challenging it has been for Wall Street to gauge the chips industry’s recovery from a worldwide glut of supply. Less than a week ago, the chipmaker STMicroelectronics NV suffered its largest intraday share loss in four years after cutting its revenue outlook and citing persistently weak demand from carmakers. Dutch chip supplier NXP Semiconductors NV also reported a drop in revenue because of lower automotive orders.
Meanwhile, Texas Instruments Inc. gave a sales outlook last week that signaled the inventory glut was coming to an end.
For the third quarter, ON Semi expects revenue between $1.7 billion and $1.8 billion, with adjusted earnings per share between $0.91 and $1.03. Wall Street has been expecting $0.97 earnings per share on $1.78 billion in revenue.
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