Market News

ON Semiconductor Beats 4Q Estimates; Shares Jump 6%

Shares of ON Semiconductor closed 6.4% higher on Monday after the US chipmaker reported 4Q results that topped analysts’ expectations amid robust demand for its automotive products.

ON Semiconductor’s (ON) 4Q adjusted earnings surged 16.7% to $0.35 per share year-over-year and beat Street estimates of $0.28. Its revenues increased 3% to $1.45 billion and surpassed the consensus mark of $1.36 billion.

The semiconductor supplier’s quarterly results benefited from an improvement in the global macroeconomic environment and recovery in the automotive end-market. (See ON Semiconductor stock analysis on TipRanks)

For 1Q, ON Semiconductor forecasted revenues between $1.41 billion to $1.51 billion.

Following the earnings release, Mizuho Securities analyst Vijay Rakesh raised the stock’s price target to $40 (9% upside potential) from $39 and reiterated a Buy rating.

In a note to investors, Rakesh wrote, “With its strong automotive position, new CEO focused on accretive growth, tight supply, Product & Foundry repositioning, and an activist investor, we see ON well positioned.”

Overall, the Street has a bullish outlook, with a Strong Buy consensus rating based on 13 Buys, 1 Hold, and 1 Sell. The average analyst price target of $39.71 implies upside potential of about 8.2% to current levels. Shares have gained 58.6% in the past year.

Meanwhile, TipRanks’ Hedge Fund Trading Activity tool shows that confidence in ON is currently Very Negative as 8 hedge funds trimmed their cumulative holdings of the stock by 1.2 million shares in the last quarter.

Related News:
Colgate-Palmolive Tops 4Q Estimates Driven By Strong Consumer Demand
Church & Dwight’s 4Q Profit Tops Analysts’ Estimates; Street Sees 14% Upside
Roper Technologies Dips 7% On 1Q Profit Outlook Miss

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More