ON Semiconductor (ON) Surges on Strong Q2 Results and Q3 Outlook
Shares of ON Semiconductor (NASDAQ: ON) are up by more than 12% in today’s trading session after the company delivered better-than-expected Q2 results and Q3 guidance.
Earnings per share (EPS) came in at $0.63 to easily top the $0.49 expected from the market analysts. Sales for the quarter soared 38% to $1.67 billion.
“Our strong second quarter results were driven by solid execution and ongoing structural changes, in addition to a strong demand environment. We posted yet another quarter of non-GAAP gross margin expansion with margins increasing by 320 basis points quarter-over-quarter. We expect that the ongoing structural changes in the business should enable us to report strong results on a sustainable basis. While we are encouraged by our recent results, we will continue to transform the business to realize its full potential,” said Hassane El-Khoury, president and CEO of ON Semiconductor.
On the guidance front, the company is forecasting EPS between $0.68 and $0.80 on sales between $1.66 billion and $1.76 billion. This is higher than the Street consensus of $0.51 per share on sales of $1.61 billion, according to analysts polled by Thomson Reuters.
“We continue to see accelerating demand for our products in our strategic automotive and industrial end-markets. As we continue to drive operational efficiencies in our manufacturing sites, we expect to see incremental supply and revenue growth in the second half of 2021,” El-Khoury added.
Shares of the company are now trading more than 35% higher YTD.