ON Semiconductor's Stock Tanks After Q3 Performance - Here's Why
Portfolio Pulse from Anusuya Lahiri
ON Semiconductor Corp's Q3 FY23 revenue declined by 0.5% YoY to $2.18 billion, beating the consensus of $2.15 billion. However, the company's adjusted gross margin and operating margin declined. The company expects Q4 adjusted revenue of $1.95 billion - $2.05 billion, below the consensus of $2.18 billion. Following the announcement, ON Semiconductor shares fell by 19.80%.
October 30, 2023 | 5:18 pm
News sentiment analysis
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NEGATIVE IMPACT
ON Semiconductor's Q3 FY23 results beat consensus but shares fell due to lower margins and Q4 revenue outlook below consensus.
Despite beating the consensus for Q3 FY23 revenue, ON Semiconductor's shares fell due to a decline in adjusted gross margin and operating margin. Additionally, the company's Q4 revenue outlook is below the consensus, which could have contributed to the negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Intel Corp, a rival of ON Semiconductor, may be indirectly affected by ON's Q3 FY23 results.
As a rival of ON Semiconductor, Intel Corp may be indirectly affected by ON's Q3 FY23 results. However, the direct impact on Intel's stock is uncertain without more specific information.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 20