ON Semiconductor (ON) 2021 Q1 Financial Results Review

ON Semiconductor Corp (NASDAQ:ON) was founded in 1999 as a result of a spinoff of Motorola Inc’s semiconductor components division. It went public in April 2000 after pricing its shares at $16 apiece. Today, ON Semiconductor is competing in the market with its energy-efficient products that range from analog and sensors to connectivity and power management devices. The company also manufactures customized products for the automotive, communications, medical, and aerospace industries, among others.

The Arizona-based semiconductor supplier recently announced its financial results for the first quarter. The company reported earnings of 20 cents per share for the three months ended April 2, significantly higher than 3 cents per share in the comparable period of 2020. On an adjusted basis, ON Semiconductor earned 35 cents per share, ahead of analysts’ average estimate of 33 cents per share.

Revenue for the quarter jumped 16 percent on a year-over-year basis to $1.482 billion, beating the consensus forecast of $1.46 billion. Automotive revenue rose 5 percent on a sequential basis to $515 million.

Speaking on the results, CEO Hassane El-Khoury said in a statement, “We delivered strong results driven by disciplined execution in a strong demand environment across our focus end-markets. Our gross margin initiatives are beginning to show early results with first quarter gross margin expanding by 80 basis points quarter-over-quarter. We remain confident in our ability to further expand our margins as we continue to make structural changes to the business.”

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ON Semiconductor also issued its financial outlook for the second quarter. It is expecting adjusted earnings in the range of 44 cents per share to 54 cents per share and revenue between $1.57 billion to $1.67 billion for the current quarter.