Onsemi Stock Surges After Chipmaker Sets Record For Automotive Revenue
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Key Takeaways
Onsemi shares jumped Monday as the maker of power semiconductors and sensors beat quarterly profit and sales estimates.
The chipmaker’s full-year automotive revenue for 2023 reached an all-time high.
CEO Hassane El-Khoury said Onsemi was able to “navigate uncertain market conditions.”
Onsemi (
ON
) shares jumped over 9% in intraday trading Monday after the maker of power semiconductors and sensors reported better-than-expected quarterly results and record annual automotive sales.
The chipmaker posted fourth-quarter
earnings per share (EPS)
of $1.25, beating estimates. Revenue declined 4% from a year ago to $2.02 billion, slightly above forecasts. Onsemi said its 2023 automotive revenue shot up 29% to an all-time high of $4.3 billion. Overall full-year revenue of $8.25 billion and EPS of $5.16 were higher than anticipated.
In the fourth quarter,
sales
at the company’s Power Solutions Group rose 4% to $1.09 billion. They fell 11% at its Advanced Solutions Group to $624.6 million and dropped 13% to $307.7 million at its Intelligent Sensing Group.
CEO Hassane El-Khoury said that the company continued to “transform the business by building resilience into our model.” He added that by doing so, Onsemi was able to “navigate uncertain market conditions and deliver more predictable and sustainable results.”
Shares of Onsemi were up 9.7% at $77.61 per share as of about 3:30 p.m. ET Monday following the news. Despite Monday’s gain, shares have lost 3.5% over the past year.
