Scottsdale, AZ – July 30, 2024: ON Semiconductor Corp. saw its shares experience their largest intraday gain in nearly two years, following the announcement of better-than-expected second-quarter results. The company’s adjusted earnings per share (EPS) for the three months ending June 28 came in at 96 cents, surpassing the 92 cents forecasted by analysts surveyed by Bloomberg.
During New York trading on Monday, the shares soared as much as 14.1%, reaching $80.05. This significant rise marks the stock’s biggest same-day gain since November 10, 2022, despite a year-to-date decline of approximately 6%.
The company reported a revenue of $1.74 billion for the period, slightly above the average analyst estimate of $1.73 billion.
ON Semiconductor’s performance underscores the unpredictable nature of the semiconductor industry’s recovery from a global supply glut. Just last week, STMicroelectronics NV experienced its largest intraday share loss in four years after reducing its revenue forecast, citing ongoing weak demand from the automotive sector. Similarly, Dutch chip supplier NXP Semiconductors NV reported a revenue drop due to lower automotive orders.
In contrast, Texas Instruments Inc. provided a sales outlook last week indicating that the inventory surplus might be nearing its end.
Looking ahead to the third quarter, ON Semiconductor forecasts revenue between $1.7 billion and $1.8 billion, with adjusted EPS ranging from $0.91 to $1.03. Analysts had anticipated earnings of $0.97 per share on $1.78 billion in revenue.
