Shares of chip components maker ON Semiconductor (ON) slipped in today’s trading as investors await its Q2 earnings results on July 29 before the market opens. Analysts are expecting earnings per share to come in at $0.92 on revenue of $1.73 billion. This represents a decline from the $1.33 per share seen in the year-ago period, according to TipRanks’ data.
However, it seems likely that the firm will beat earnings estimates, as it has done so every quarter since its 2020 Q3, as pictured below. Still, the beats have never been large enough for investors to hope that ON will be able to exceed last year’s figure.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 9.69% move in either direction.
Is ON Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ON stock based on 12 Buys, six Holds, and one Sells assigned in the past three months, as indicated by the graphic below. After a 32% decline in its share price over the past year, the average ON price target of $79.72 per share implies 14.02% upside potential.
