ON Semiconductor Corporation (NasdaqGS:ON) is scheduled to report Q3 earnings results before markets open for trading on November 2, 2020.
The company is expected to report earnings of $0.20/share on revenue of $1.275 billion. The consensus earnings per share (EPS) of $0.20/share is based on a poll of 24 analysts and represents a decline in eps of −39.1% over the same quarter last year, when the company reported earnings of $0.33/share.
The revenue forecast of $1.275 billion based on a poll of 21 analysts implies a year-over-year (YoY) decline in revenue of −7.7%. Last year the company reported $1.382 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed 3 quarters.
What are your expectations from ON Semiconductor Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 3, 2020, the stock price reacted by increasing 5.18%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 8, 2020||$20.84||$21.92||5.18%||Increase|
|May 9, 2020||$17.12||$15.66||-8.53%||Decline|
|February 3, 2020||$23.15||$19.82||−14.4%||Decline|
|October 27, 2019||$19.18||$21.21||10.6%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.95, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.95 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
ON Semiconductor Corporation is currently trading at $25.55/share, down −2.3% for the day. The company is trading at approximately 95.2% of its 52-week high of $26.84/share. The company’s stock price is up 22.6% since the last earnings report and down −2.1% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 59.97 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −535.54 and a forward P/E multiple of 38.41.
ON Semiconductor Corporation’s current share price also implies a price-to-book (P/B) multiple of 3.24. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||July 3, 2020|
|Stock Price (Current)||$25.55|
|P/E Ratio (Fwd)||38.4x|
|Total Debt / Total Capital||31.2%|
|Levered Free Cash Flow||$225 million|
|EV / EBITDA||12.7x|
ON Semiconductor Corporation is a large-cap stock with a market capitalization of $10.496 billion and a total enterprise value of $13.347 billion. The company operates in the Information Technology sector and the Semiconductors & Semiconductor Equipment industry.
ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group (PSG), Advanced Solutions Group (ASG), and Intelligent Sensing Group (ISG). The PSG segment offers analog, discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions. The ASG segment designs and develops analog, mixed-signal, logic, Wi-Fi, and application specific integrated circuits and standard products, as well as power solutions for various end-users in the automotive, consumer, computing, industrial, communications, medical, and aerospace/defense markets. It also provides trusted foundry and design services for government customers; and manufacturing services. The ISG segment offers complementary metal oxide semiconductors and charge-coupled device image sensors, proximity sensors, image signal processors, single photon detectors, and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, consumer, wireless, medical, and aerospace/defense markets. The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Phoenix, Arizona.