ON Semiconductor (NASDAQ:ON) shares trade over 4% higher in pre-open Monday after the Arizona-based chip supplier delivered better-than-expected Q1 results and Q2 outlook.
The company posted EPS of $1.19 on revenue of $1.96 billion, beating the consensus for earnings of $1.08 per share on revenue of $1.92B. The adjusted gross margin came in line with expectations at 46.8%.
"As secular tailwinds propel our business, we are prudently managing our operations to deliver consistent and predictable results in the current market environment," said Hassane El- Khoury, president and CEO of ON Semiconductor.
For this quarter, the company sees EPS at $1.21 on revenue of $2.025B, at the midpoint of the guidance. Street was expecting Q2 EPS of $1.06 on revenue of $1.93B.
Vital Knowledge analysts commented:
“There was some anxiety last week after a few semiconductor firms posted whelming results and raised potential red flags about auto demand, but this ON print/guide should put those fears to rest.”