ON Semiconductor Corporation ( (ON) ) has released its Q4 earnings. Here is a breakdown of the information ON Semiconductor Corporation presented to its investors.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
ON Semiconductor Corporation, a Fortune 500 company, is a leading provider in the automotive and industrial sectors, focusing on intelligent power and sensing technologies to drive innovations in vehicle electrification, sustainable energy grids, and industrial automation.
In its latest earnings report, ON Semiconductor Corporation announced its financial results for the fourth quarter and full year of 2024. Despite challenging market conditions, the company maintained a solid stance, highlighting a significant increase in free cash flow and strategic share repurchases as part of its financial strategy.
The company reported fourth-quarter revenue of $1,722.5 million, with a gross margin of 45.2% and operating margin of 23.7% on a GAAP basis. Non-GAAP figures showed slightly better margins. For the full year, ON Semiconductor saw a free cash flow increase threefold to $1.2 billion. However, the annual revenue dropped to $7,082.3 million from $8,253.0 million in 2023, reflecting a challenging year with decreased operating and net income.
The company’s business segments reported declines, particularly in the Power Solutions Group and Advanced Mobility Group, with revenue decreasing by 14% and 15% respectively year-over-year. Nevertheless, the Intelligent Sensing Group managed a modest decrease of 2% in the fourth quarter compared to the previous year.
Looking forward, ON Semiconductor remains committed to its long-term strategy despite the uncertain 2025 outlook. The company aims to continue its focus on delivering high-value products while maintaining financial discipline and operational streamlining to navigate market volatility effectively.
