Why Is ON Semiconductor Stock Trading Higher On Monday?
Portfolio Pulse from Anusuya Lahiri
ON Semiconductor Corp (NASDAQ: ON) reported a fiscal first-quarter 2024 revenue decline of 5% year-on-year to $1.86 billion, slightly beating the consensus of $1.85 billion. The adjusted EPS of $1.08 also surpassed the consensus of $1.04. Despite declines in certain segments, the company outperformed expectations and provided a Q2 outlook with adjusted revenue of $1.68 billion to $1.78 billion, below the consensus of $1.92 billion, and adjusted EPS of $0.86 to $0.98, against a consensus of $1.10. Analyst Harsh V. Kumar from Piper Sandler anticipates a recovery in the second half of 2024, especially in the EV market, which is expected to grow long-term. ON Semiconductor stock is trading higher by 4.23% at $70.94. Investors can also gain exposure through ETFs like QCLN and SHOC.
April 29, 2024 | 3:34 pm
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POSITIVE IMPACT
ON Semiconductor exceeded Q1 2024 earnings expectations and provided a cautious Q2 outlook. Analysts predict a recovery in H2, particularly in the EV market.
The positive earnings report and the stock's subsequent price increase indicate a short-term positive impact. However, the cautious Q2 outlook tempers expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
QCLN ETF offers exposure to ON Semiconductor, which reported better than expected Q1 2024 earnings and is optimistic about recovery in the second half of 2024.
Given ON Semiconductor's significant role in the clean energy and semiconductor sectors, its performance can impact related ETFs like QCLN.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
SHOC ETF, which includes ON Semiconductor, may see positive effects from ON's Q1 performance and its expected recovery in the EV market in H2 2024.
ON Semiconductor's performance and future outlook, particularly in the EV market, could positively influence ETFs like SHOC that hold ON shares.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Tesla Inc's silicon carbide penetration in EVs is highlighted as significantly higher than the industry average, indicating a strong position in the EV market.
Tesla's notable mention regarding its silicon carbide penetration suggests its technological and market leadership in the EV sector, potentially impacting its stock positively.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50