ON Semiconductor (ON) Earnings Preview: What to Expect and Analyst Sentiment
ON Semiconductor Corporation (ON) is gearing up to release its financial results for the third quarter of 2024, before the market opens on Monday, October 28th. Investors will be closely watching to see how the company navigates the current economic landscape and the evolving semiconductor market.
Analyst Expectations
Analysts are forecasting a decline in earnings and revenue for ON Semiconductor compared to the same period last year. The consensus estimate is for earnings per share of $0.97, down from $1.39 in the third quarter of 2023. Revenue is projected to come in at $1.75 billion, compared to $2.18 billion in the year-ago period.
It’s worth noting that ON Semiconductor exceeded earnings and revenue expectations in the second quarter of 2024, reported on July 29th. This suggests the company may be able to outperform analyst expectations once again, but the current economic environment and semiconductor market trends will play a key role.
Analyst Ratings
Let’s take a look at how Benzinga’s most accurate analysts have rated ON Semiconductor in the recent period:
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Keybanc
: Analyst John Vinh maintains an Overweight rating with a price target of $90, down from $95. (Accuracy Rate: 76%)*
B of A Securities
: Analyst Vivek Arya maintains a Buy rating with a price target of $90, up from $80. (Accuracy Rate: 82%)*
Deutsche Bank
: Analyst Ross Seymore maintains a Buy rating with a price target of $90, up from $85. (Accuracy Rate: 83%)*
Rosenblatt
: Analyst Kevin Cassidy maintains a Neutral rating with a price target of $75, up from $70. (Accuracy Rate: 73%)*
Truist Securities
: Analyst William Stein maintains a Buy rating with a price target of $97, up from $85. (Accuracy Rate: 86%)What to Watch For
During the earnings call, investors should pay close attention to the following factors:
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Guidance:
Management’s outlook for the fourth quarter and full-year 2024 will be a crucial indicator of the company’s confidence in its future performance.*
Market Conditions:
The company’s assessment of the global semiconductor market, including supply chain constraints, demand trends, and pricing pressures, will be closely watched.*
New Products and Technologies:
ON Semiconductor is investing heavily in new technologies, such as automotive chips and power management solutions. Any updates on these areas will be of interest to investors.Conclusion
ON Semiconductor’s third-quarter earnings report provides an important opportunity for investors to assess the company’s progress and future prospects. While analysts expect a decline in earnings and revenue compared to last year, the company’s recent performance and positive analyst sentiment suggest that ON Semiconductor is well-positioned to navigate the current market challenges.
