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On Semiconductor 8-K Report, Financial Results (Oct 28, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 28, 2024
Period End
October 28, 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 October 28, 2024. Cited figures are marked; the original filing is the authoritative source.

ON Semiconductor Corporation, now onsemi, reported third-quarter 2024 results for the quarter ended September 27, 2024 in a news release furnished as Exhibit 99.1.

Revenue was $1,761.9 milliona, up from $1,735.2 million in the prior quarter (Q2 2024) and down from $2,180.8 million in Q3 2023. GAAP gross margin was 45.4 percent and non-GAAP gross margin was 45.5 percent. GAAP operating margin was 25.3 percent and non-GAAP operating margin was 28.2 percent.

GAAP diluted earnings per share were $0.93b and non-GAAP diluted earnings per share were $0.99. Net income attributable to ON Semiconductor Corporation was $401.7 million on a GAAP basis and $423.8 million on a non-GAAP basis. Free cash flow was $293.6 million for the quarter, and the company returned 75 percent of free cash flow over the last twelve months to shareholders through stock repurchases.

Chief Executive Officer Hassane El-Khoury said results were above expectations and that the company is investing across the power spectrum to gain share in automotive, industrial, and AI data center markets. For the fourth quarter of 2024, the company guided to GAAP revenue of $1,710 million to $1,810 millionc, with non-GAAP revenue in the same range. GAAP diluted earnings per share are projected at $0.88 to $1.00, and non-GAAP diluted earnings per share at $0.92 to $1.04.

Non-GAAP gross margin is projected at 44.0 percent to 46.0 percent. Non-GAAP operating expenses are projected at $300 million to $315 milliond. Segment revenue for the quarter was PSG $829.4 million, AMG $653.7 million, and ISG $278.8 million.

At September 27, 2024, cash and cash equivalents were $2,470.2 million and long-term debt was $2,547.2 million. The filing states the Exhibit 99.1 information is furnished, not filed, under Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Third-quarter 2024 revenue was $1,761.9 million, up from $1,735.2 million in Q2 2024 but down from $2,180.8 million in Q3 2023.
  2. GAAP diluted EPS was $0.93 and non-GAAP diluted EPS was $0.99, compared with $1.29 GAAP and $1.39 non-GAAP in Q3 2023.
  3. GAAP operating margin of 25.3 percent and non-GAAP operating margin of 28.2 percent, compared with 31.5 percent and 32.6 percent in Q3 2023.
  4. Free cash flow for the quarter was $293.6 million, up from $207.7 million in Q2 2024; the company returned 75 percent of trailing twelve-month free cash flow through stock repurchases.
  5. Fourth-quarter 2024 revenue guidance is $1,710 million to $1,810 million, with non-GAAP diluted EPS projected at $0.92 to $1.04.
  6. Segment revenue in Q3 2024 was PSG $829.4 million, AMG $653.7 million, and ISG $278.8 million, with ISG up 11 percent sequentially.
  7. Cash and cash equivalents were $2,470.2 million at September 27, 2024, with long-term debt of $2,547.2 million.

03—Questions

Frequently Asked Questions

  1. How did onsemi perform in the third quarter of 2024 compared with the prior year?

    Revenue was $1,761.9 million, down from $2,180.8 million in Q3 2023. GAAP diluted EPS was $0.93, compared with $1.29 a year earlier, and GAAP operating margin was 25.3 percent versus 31.5 percent.

  2. What is the company's fourth-quarter 2024 outlook?

    The company projects GAAP revenue of $1,710 million to $1,810 million and GAAP diluted EPS of $0.88 to $1.00. Non-GAAP diluted EPS is projected at $0.92 to $1.04, and non-GAAP gross margin at 44.0 percent to 46.0 percent.

  3. How much free cash flow did the company generate and how was it used?

    Free cash flow was $293.6 million in the quarter and $777.6 million for the nine months ended September 27, 2024. The company returned 75 percent of free cash flow over the last twelve months through stock repurchases, and repurchased $200.0 million of common stock in the quarter.

  4. How did the business segments perform?

    PSG revenue was $829.4 million, down 1 percent sequentially and 23 percent year over year. AMG revenue was $653.7 million, up 1 percent sequentially and down 16 percent year over year. ISG revenue was $278.8 million, up 11 percent sequentially and down 15 percent year over year.

  5. What did management say about the outlook and strategy?

    CEO Hassane El-Khoury said results were above expectations and the company remains focused on consistent results through execution and prudent financial management. He said the company is investing to win across the power spectrum to gain share in automotive, industrial, and AI data center markets.

04—Continue

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