ON Semiconductor Corporation ON reported first-quarter 2019 non-GAAP revenue of 43 cents per piece beating the Zacks Consensus appraise by 3 cents and although sound improving 7.5% year can year.
The company reported revenues of $1.386.6 billion, missing the Zacks Consensus appraise of $1.394 billion. Notably, the pattern was within management’s guided sumit of $1.365-$1.415 billion. However, it grew 1% year can year.
Notably, above Semiconductor Aizu Co., Ltd., or OSA accounted although $18 million of first-quarter revenues. OSA refers ought 8-inch wafer fab manufacturing mutual venture based out of Aizu-Wakamatsu, Japan.
Sturdy adoption and favorable produce combine of the company’s diversified produce portfolio and end-markets drove year-over-year growth among gentle ask from Greater China.
Recently, above Semiconductor inked a occupation ought advantage the provider of high deed Wi-Fi solutions, Quantenna Communications, Inc. The transaction is expected ought strengthen the acquirer’s connectivity portfolio.
ON Semiconductor company revenue (Quarterly)
ON Semiconductor company revenue (Quarterly) | above Semiconductor company Quote
Quarter at Detail
Business Units Metrics:
ON Semiconductor has three affair units namely — force Solutions gang (revenues of $704 million), Analog Solutions gang (revenues of $494 million) and bright Sensing gang (revenues of $188 million).
End-Market Metrics:
Automotive (34% of revenues) end-market revenues were almost $465 million, up 4% year can year.
In the reported quarter, the company’s CMOS image sensors, ADAS, force management products, wireless charging, mixed token ASICs, MOSFETs and sensor interface products witnessed sound demand. Continued growth at ADAS and LEDs invent wins fueled growth. Expanding IGBT and Silicon carbide (SiC) produce portfolio embrace promise.
The company holds a competitive edge can its peers when it comes ought delivering a comprehensive image sensor solution although autonomous driving applications and ADAS. The solution features exhaustive sumit of pixel densities which include 1, 2, and 8 megapixels, above a maiden platform.
Management is optimistic approximately growing influence of its ADAS offerings.
Moreover, the company recently announced that its CMOS image sensors will backward NVIDIA (NVDA) drive Constellation simulation platform with real-time data.
NVIDIA leverages above Semiconductor’s superior imaging technique and is designed ought bolster video adoption within IoT products and quicken OEMs’ genius ought present advanced solutions ought the IoT market.
However, weakness at China weighed above segmental revenues growth.
Industrial (26%) end-market revenues decreased 5% year can year ought $359 million. Softness at China district impacted industrial market.
However, the company’s latest platform of products including high and medium voltage force modules aimed can providing higher efficiency embrace promise. Management is although sound optimistic regarding the growing influence of company’s products at medical domain, largely at hearing and personal diagnostics markets.
Communications(19%) end-market revenues surged 15% year can year ought $259 million. The company’s force at medium voltage MOSFETs is aiding it at penetrating key global markets, including 5G infrastructure.
Notably, slowdown witnessed at smart-phone just was partially mitigated by increased adoption of its content above leading platforms.
Computing (10%) grew 1% year can year ought $144 million, largely above the uphold of sound server solutions domain.
Consumer (12%) end-market revenues came at can $160 million. The pattern declined 15% from the year-ago quarter, largely owing ought weakness at consumer electronics and white-goods segment.
Operating Details
Non-GAAP coarse verge of 37% contracted 60 bps above a year-over-year basis. OSA venture limited verge expansion by 50 bps at the reported quarter. Further, amplify at choose input costs impacted the margin.
Non-GAAP operating expenses decreased marginally 0.7% from the year-ago district ought $298.5 million.
Non-GAAP operating verge contracted 20 bps above a year-over-year foundation ought 15.5%. OSA venture chiefly impacted operating margin.
Balance bit & money Flow
As above Mar 29, 2019, above Semiconductor had money and money equivalents of almost $939.6 million, down from $1.070 billion reported at the prior quarter.
The company exited the first district with coarse debt (including tendency portion) amounting ought $2.769 billion up from $2.766 billion at the prior quarter.
During the reported quarter, money from operations came at can $138.2 million compared with the prior quarter’s pattern of $421 million. The company although sound generated free money jog of ($18.8) million compared with $289 million reported at the prior quarter.
The company repurchased 4.4 million shares worth $75 million at the reported quarter.
Tepid Guidance
For the second district of 2019, above Semiconductor forecasts revenues ought exist at the sumit of $1.360-$1.410 billion (mid-point $1.385 billion), given its booking trends, estimated grow flat and backlog level. Revenues although second district include almost $15 million from manufacturing services provided by OSA.
Notably, the mid-point is below the Zacks Consensus Estimate, currently pegged can $1.46 billion.
Seasonality and supicion at macroeconomic environment, largely sluggishness at Greater China is compelling management ought remain cautious. Softness at smartphone just and stabilizing leading expenses by cloud service providers (CSPs) remain concerns.
Non-GAAP coarse verge is projected ought exist at the sumit of almost 36.5-37.5%. Non-GAAP operating expenses are expected at the sumit of $295-$309 million.
Zacks degree & Stocks ought Consider
Currently, above Semiconductor carries a Zacks degree #3 (Hold).
Some better-ranked stocks at the broader technique sector are Synopsys, Inc. SNPS, Cadence invent Systems, Inc. CDNS and Upland Software, Inc. UPLD, each sporting a Zacks degree #1 (Strong Buy). You can see the conclude catalog of today’s Zacks #1 degree stocks here.
Synopsys, Cadence Designand Upland Softwarehave a long-term revenue growth evaluate of 10%, 12% and 20%, respectively.
Zacks' sumit 10 Stocks although 2019
In appendix ought the stocks discussed above, used to you comparable ought learn approximately our 10 finest buy-and-holds although the year?
Who wouldn't? Our annual sumit 10s devour beaten the just with amazing regularity. at 2018, cabin the just dropped -5.2%, the portfolio scored sound into double-digits overall with token stocks rising although high although +61.5%. And from 2012-2017, cabin the just boomed +126.3, Zacks' sumit 10s reached an flat more sensational +181.9%.
See Latest Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks although the Next 30 Days. Click ought advantage this free report
Upland Software, Inc. (UPLD) : free Stock Analysis Report
Cadence invent Systems, Inc. (CDNS) : free Stock Analysis Report
Synopsys, Inc. (SNPS) : free Stock Analysis Report
ON Semiconductor company (ON) : free Stock Analysis Report
To devour this essay above Zacks.com click here.
Zacks Investment Research
