Onsemi Misses Q4 Revenue Estimates Amid Inventory Glut
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ON?
Source: Newsfilter
- Revenue Shortfall: Onsemi reported Q4 revenue of $1.53 billion, an 11% decline year-over-year, missing Wall Street's expectations of $1.54 billion, indicating significant challenges due to an ongoing inventory glut.
- Segment Declines: The power solutions group, Onsemi's largest revenue contributor, generated $724.2 million, down 11% year-over-year, while the intelligent sensing group fell 17% to $249.6 million, reflecting weak market demand.
- Increased Competition: Onsemi's silicon carbide chip business continues to face challenges amid heightened competition from Chinese firms, and slower-than-expected electric vehicle sales may impact future market share.
- Cautious Outlook: The company expects Q1 revenue between $1.44 billion and $1.54 billion, with the midpoint falling below analysts' estimate of $1.51 billion, indicating a cautious outlook for future market conditions.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 70.630
Low
50.00
Averages
61.25
High
80.00
Current: 70.630
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Strong Cash Flow and Buybacks: The company reported a record free cash flow margin for 2025, enabling it to utilize 100% of this cash for share buybacks, which is expected to strengthen share prices.
Segment Performance: The Intelligent Sensing Group performed strongly with a 9% year-over-year growth, while other segments like Power Solutions and Analog & Mixed Signal faced challenges, leading to overall mixed performance.
Analyst Sentiment: Analysts have mixed sentiments about Onsemi, with some price target reductions offset by upgrades, indicating a generally favorable outlook for the stock, which is considered fairly valued near its critical resistance point.
See More
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- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
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