Shares in ON Semiconductor (NASDAQ:ON) popped more than 6% after the chipmaker reported better-than-expected results for the fiscal Q2.
The company posted quarterly earnings per share (EPS) of $0.96, surpassing the analysts' estimate of $0.92. Revenue for the quarter came in at $1.74 billion, also slightly above the consensus estimate of $1.73 billion.
Adjusted gross margin for the quarter was 45.3%, compared to 47.4% year-over-year and the estimate of 45.2%.
Adjusted operating margin stood at 27.5%, down from 32.8% year-over-year but above the estimate of 26.8%.
For Q3 2024, ON Semiconductor anticipates EPS of $0.91 to $1.03, compared to the consensus of $0.97.
Revenue is projected to range between $1.7 billion and $1.8 billion, against the consensus estimate of $1.779 billion.
The company also expects an adjusted gross margin of 44.4% to 46.4%, while analysts forecasted 45.4%.
“We remain dedicated to driving growth through market share gains, doubling down on investments in strategic markets, and expanding the breadth of our portfolio of industry-leading products with analog and mixed-signal solutions,” said Hassane El-Khoury, president and CEO of Onsemi.
“As reflected by our recent supply agreement with Volkswagen Group, we also continue to strengthen our silicon carbide leadership position in automotive as we ramp production with leading global OEMs in Europe, North America and China.”