ON Semiconductor Corp (NASDAQ: ON) stock reported a third-quarter FY23 revenue decline of 0.5% year-on-year to $2.18 billion, beating the consensus of $2.15 billion.
The Intel Corp (NASDAQ: INTC) rival’s adjusted EPS of $1.39 beat the consensus of $1.34.
Revenue from Power Solutions Group (PSG) grew 10% Y/Y to $1.23 billion, Advanced Solutions Group (ASG) decreased 15% Y/Y to $621.6 million, and Intelligent Sensing Group (ISG) fell by 4% Y/Y to $328.6 million.
The adjusted gross margin declined by 200 bps to 47.3%, and the adjusted operating margin decreased by 280 bps to 32.6%.
ON Semiconductor generated $133.6 million in free cash flow and held $2.68 billion in cash and equivalents.
CEO Hassane El-Khoury said, “We continue to drive structural improvements and efficiencies, most notably in our silicon carbide operation, with the completed expansion of the world’s largest, state-of-the-art silicon carbide fab in South Korea for 150- and 200-millimeter wafers.”
Outlook: ON Semiconductor expects fourth-quarter adjusted revenue of $1.95 billion – $2.05 billion, below the consensus of $2.18 billion.
The company sees non-GAAP EPS of $1.13 – $1.27 versus the consensus of $1.36.
ON Price Action: ON Semiconductor shares are trading lower by 19.80% at $66.94 on the last check Monday.
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This article ON Semiconductor’s Stock Tanks After Q3 Performance – Here’s Why originally appeared on Benzinga.com
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