ON Semiconductor Stock Plummets After Bleak Fourth-Quarter Outlook
Shares of ON Semiconductor dropped Monday after the company projected fourth-quarter earnings and revenue declines that were worse than analysts were expecting.
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ON Semiconductor Stock Plummets After Offering Bleak Fourth-Quarter Outlook, via @FactSet #semiconductors #chips #ai pic.twitter.com/LZXhcsilv9
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Executives said on a conference call with analysts that it is seeing reduced demand from some European automotive customers that are working through inventory, as well as risks to auto-sector demand caused by higher interest rates.
- The stock was down 18% in recent trading, though it remains up about 13% for the year.
The maker of intelligent sensing and power services said Monday morning that it expects earnings of $1.10 to $1.24 a share for the fourth quarter, below the year-ago quarter’s $1.35 a share and analyst projections for $1.29 a share, according to FactSet.
Adjusted earnings, which strip out one-time items, are expected to be $1.13 to $1.27 a share. Analysts surveyed by FactSet had been expecting $1.36 a share.
Quarterly revenue is expected to be $1.95 billion to $2.05 billion, down from $2.1 billion last year and below analyst forecasts for $2.18 billion, according to FactSet.
