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On Semiconductor 8-K Report, Financial Results (Feb 5, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 5, 2024
Period End
February 5, 2024
Security
ON
In the record · 2016–202610-K1110-Q338-K162

ON filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 162 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’18Oct ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Impairment8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed February 5, 2024. Cited figures are marked; the original filing is the authoritative source.

ON Semiconductor Corporation (now onsemi, Nasdaq: ON) furnished its fourth-quarter and full-year 2023 results in Exhibit 99.1, a news release dated February 5, 2024.

Fourth-quarter revenue was $2,018.1 milliona, down (7)% sequentially from $2,180.8 million in Q3 2023 and down (4)% year-over-year from $2,103.6 million. GAAP gross margin was 46.7% and GAAP operating margin was 30.3%, versus 31.6% on a non-GAAP basis. GAAP diluted EPS was $1.28 and non-GAAP diluted EPS was $1.25.

For fiscal 2023, revenue was $8,253.0 millionb, down (1)% from $8,326.2 million, while GAAP diluted EPS was $4.89 and non-GAAP diluted EPS was $5.16. Management highlighted record full-year automotive revenue of $4.3 billion, up 29% year-over-year, and silicon carbide revenue that grew 4x year-over-year. By segment, Power Solutions Group (PSG) revenue rose 6% for the year, Analog and Silicon Group (ASG) fell (12)%, and Intelligent Sensing Group (ISG) rose 3%.

Full-year 2023 operating cash flow was $1,977.5 millionc and free cash flow was $401.9 million, while purchases of property, plant and equipment were $1,575.6 million. The company repurchased $564 million of stock in 2023, which the release describes as 140% of free cash flow.

For the first quarter of 2024, the company guided to revenue of $1,800 million to $1,900 milliond, GAAP diluted EPS of $0.94 to $1.06, and non-GAAP diluted EPS of $0.98 to $1.10. The release also refers to a new share repurchase program, which is mentioned in the forward-looking statements section.

02—Key points

Key Highlights

  1. Q4 2023 revenue was $2,018.1 million, down (7)% sequentially from $2,180.8 million and down (4)% year-over-year from $2,103.6 million.
  2. Q4 2023 GAAP diluted EPS was $1.28 and non-GAAP diluted EPS was $1.25, compared with non-GAAP diluted EPS of $1.39 in Q3 2023 and $1.32 in Q4 2022.
  3. Full-year 2023 revenue was $8,253.0 million, down (1)% from $8,326.2 million in 2022, with GAAP diluted EPS of $4.89 versus $4.25 in 2022.
  4. Record full-year automotive revenue of $4.3 billion increased 29% year-over-year, and silicon carbide revenue grew 4x year-over-year.
  5. Full-year 2023 operating cash flow was $1,977.5 million, free cash flow was $401.9 million, and share repurchases totaled $564 million, representing 140% of free cash flow.
  6. Q1 2024 guidance calls for revenue of $1,800 million to $1,900 million, GAAP diluted EPS of $0.94 to $1.06, and non-GAAP diluted EPS of $0.98 to $1.10.
  7. Cash and cash equivalents were $2,483.0 million at December 31, 2023, compared with $2,919.0 million at December 31, 2022.

03—Questions

Frequently Asked Questions

  1. How did ON Semiconductor perform in the fourth quarter of 2023?

    Q4 2023 revenue was $2,018.1 million, down (7)% sequentially and down (4)% year-over-year. GAAP gross margin was 46.7% and GAAP operating margin was 30.3%. GAAP diluted EPS was $1.28, and non-GAAP diluted EPS was $1.25.

  2. What drove the results for the full year 2023?

    Full-year revenue was $8,253.0 million, down (1)%. The filing highlights record automotive revenue of $4.3 billion, up 29% year-over-year, and silicon carbide revenue that grew 4x year-over-year. By segment, PSG revenue rose 6%, ISG rose 3%, and ASG fell (12)%.

  3. What is the company's guidance for the first quarter of 2024?

    The company projects first-quarter 2024 revenue of $1,800 million to $1,900 million, GAAP gross margin of 44.4% to 46.4%, and GAAP diluted EPS of $0.94 to $1.06. On a non-GAAP basis, it projects diluted EPS of $0.98 to $1.10.

  4. How much did the company return to shareholders and how does it compare with cash generation?

    The company repurchased $564 million of stock in 2023, which the release states represents 140% of free cash flow. Free cash flow for 2023 was $401.9 million, and the filing also references a new share repurchase program.

04—Continue

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