01—Abstract
Summary
Summary of the 8-K filed April 29, 2024. Cited figures are marked; the original filing is the authoritative source.
onsemi (filed as ON Semiconductor Corporation, Nasdaq: ON) reported first-quarter 2024 results for the quarter ended March 29, 2024, furnished under Item 2.02 in Exhibit 99.1.
Revenue was $1,862.7 milliona, down from $2,018.1 million in the fourth quarter of 2023 and $1,959.7 million in the first quarter of 2023. 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 EPS was $1.04b and non-GAAP diluted EPS was $1.08. Management said it returned approximately 100% of free cash flow over the last twelve months to shareholders through stock repurchases, and that free cash flow for the quarter was $276.3 million, compared with $87.4 million in the first quarter of 2023. By segment, Power Solutions Group (PSG) revenue was $874.2 million, Analog and Mixed-Signal Group (AMG) was $697.0 million, and Intelligent Sensing Group (ISG) was $291.5 million.
The company stated that it reorganized certain reporting units and its segment structure in the quarter, and prior-period amounts were reclassified. Cash and cash equivalents were $2,614.4 millionc at quarter end, and long-term debt was $2,544.1 million. Repurchases of common stock were $100.0 million in the quarter.
For the second quarter of 2024, the company guided GAAP revenue of $1,680 million to $1,780 milliond, GAAP gross margin of 44.1% to 46.1%, and GAAP diluted EPS of $0.82 to $0.94, or $0.86 to $0.98 on a non-GAAP basis. The guidance is subject to the forward-looking risks described in the 2023 Form 10-K.
02—Key points
Key Highlights
- Q1 2024 revenue was $1,862.7 million, down from $2,018.1 million in Q4 2023 and $1,959.7 million in Q1 2023.
- GAAP diluted EPS was $1.04 and non-GAAP diluted EPS was $1.08, compared with $1.28 GAAP and $1.25 non-GAAP in Q4 2023.
- Free cash flow was $276.3 million in Q1 2024, versus $220.7 million in Q4 2023 and $87.4 million in Q1 2023.
- Gross margin held near 46%, with GAAP at 45.8% and non-GAAP at 45.9%, and management credited structural changes made over the last three years.
- Segment revenue: PSG $874.2 million, AMG $697.0 million, ISG $291.5 million, following a segment reorganization.
- Q2 2024 guidance calls for revenue of $1,680 million to $1,780 million and GAAP diluted EPS of $0.82 to $0.94.
- The company repurchased $100.0 million of common stock in the quarter and returned approximately 100% of trailing-twelve-month free cash flow to shareholders through buybacks.
03—Questions
Frequently Asked Questions
How did onsemi perform in the first quarter of 2024?
Revenue was $1,862.7 million, with GAAP gross margin of 45.8%, GAAP operating margin of 28.2%, and GAAP diluted EPS of $1.04. Non-GAAP diluted EPS was $1.08. All figures declined sequentially from the fourth quarter of 2023 and year over year from the first quarter of 2023 on the revenue line.
What is the company's outlook for the second quarter of 2024?
The company projects Q2 2024 revenue of $1,680 million to $1,780 million, GAAP gross margin of 44.1% to 46.1%, and GAAP diluted EPS of $0.82 to $0.94. Non-GAAP diluted EPS is projected at $0.86 to $0.98.
How much free cash flow did the company generate and what did it do with it?
Free cash flow was $276.3 million in the quarter, and management said it returned approximately 100% of free cash flow over the last twelve months to shareholders through stock repurchases. The company repurchased $100.0 million of common stock in the quarter.
How did the business segments perform?
PSG revenue was $874.2 million, AMG was $697.0 million, and ISG was $291.5 million. The company reorganized certain reporting units and its segment structure this quarter, and prior-period amounts were reclassified to match the current presentation.
Are the non-GAAP figures comparable to GAAP results?
The filing presents non-GAAP measures that exclude items such as amortization of acquisition-related intangibles, restructuring, and pension gains or losses, and reconciles them to GAAP. The company notes that non-GAAP measures are not standardized and should not be relied on alone. Its non-GAAP tax rate is a normalized 16%, which the company expects to use through 2025.
04—Continue