Chipmaker Onsemi misses quarterly revenue estimates, shares fall

Feb 9 (Reuters) - Chipmaker ⁠Onsemi missed Wall ⁠Street ‍estimates for fourth-quarter revenue on Monday, with its business segments declining as much as ‍17%, hurt by a persistent inventory glut.

Shares of ​the Phoenix, Arizona-based company fell nearly 6% in extended trading.

Onsemi has ​been grappling with an inventory glut as its customers work through excess chip stockpiles ordered during the supply chain crunch.

Analysts expect ​Onsemi's silicon carbide chips business to continue facing challenges, amid increased competition from Chinese companies and ​as electric vehicle sales have grown slower than expected.

The recent cuts to clean ‌energy tax credits in the U.S. could also slow down customer adoption in the near ​term.

Onsemi reported revenue of $1.53 billion, ⁠down 11%, for the quarter ended December 31, missing estimates of $1.54 billion according to ‌data compiled by LSEG.

Power solutions group, which provides high-performance power semiconductors and is Onsemi's largest revenue contributor, posted revenue of $724.2 ‌million in the fourth quarter, down 11%from a year earlier.

The intelligent ‌sensing group declined 17% to $249.6 million in the quarter, while Onsemi's analog and mixed-signal segment reported a 9% fall in revenue ‍to $556.3 million.

On an adjusted basis, the company earned 64 cents per share, compared with ⁠estimates of 62 cents.

Onsemi expects first-quarter revenue between $1.44 billion and $1.54 billion, the midpoint of which comes below analysts' estimates of $1.51 billion.

(Reporting by Juby Babu in Mexico City; Editing by Krishna Chandra Eluri)

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