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Mar 29, 2024

ON Semiconductor Q1 2024 Earnings Report

ON Semiconductor's Q1 2024 results exceeded expectations with increased free cash flow.

Key Takeaways

ON Semiconductor reported Q1 2024 revenue of $1,862.7 million, GAAP EPS of $1.04, and non-GAAP EPS of $1.08. The company's gross margin remained strong despite challenging market conditions, and free cash flow increased approximately 3x year-over-year.

Revenue reached $1,862.7 million.

GAAP gross margin was 45.8 percent, and non-GAAP gross margin was 45.9 percent.

GAAP operating margin was 28.2 percent, and non-GAAP operating margin was 29.0 percent.

GAAP diluted earnings per share was $1.04, and non-GAAP diluted earnings per share was $1.08.

Total Revenue
$1.86B
Previous year: $1.96B
-5.0%
EPS
$1.08
Previous year: $1.19
-9.2%
Gross Margin
45.8%
Previous year: 46.8%
-2.1%
Operating Margin
28.2%
Previous year: 28.8%
-2.1%
Gross Profit
$854M
Previous year: $918M
-7.0%
Cash and Equivalents
$2.61B
Previous year: $2.7B
-3.3%
Free Cash Flow
$276M
Previous year: $87.4M
+216.1%
Total Assets
$13.5B
Previous year: $12.3B
+9.8%

ON Semiconductor

ON Semiconductor

Forward Guidance

ON Semiconductor projects the second quarter of 2024 revenue to be between $1,680 million and $1,780 million, with a GAAP diluted earnings per share between $0.82 and $0.94 and non-GAAP diluted earnings per share between $0.86 and $0.98.

Positive Outlook

  • Revenue between $1,680 to $1,780 million
  • Gross Margin 44.1% to 46.1%
  • Other Income and Expense (including interest), net ($12 million)
  • Diluted Earnings Per Share $0.82 to $0.94
  • Non-GAAP Diluted Earnings Per Share $0.86 to $0.98

Challenges Ahead

  • Operating Expenses $327 to $342 million
  • Special Items impact of $14 million on Operating Expenses
  • GAAP Diluted Shares Outstanding of 436 million
  • Amortization of acquisition-related intangibles
  • expensing of appraised inventory fair market value step-up