ON Semiconductor shares moved higher on Monday after the chipmaker unveiled above-market third quarter guidance on its expectation of rising demand for silicon carbide.
The Arizona-based chipmaker expects to post 3Q revenue between $2.1 billion to $2.2 billion, above the $2.07 billion expected by Wall Street analysts, according to Refinitiv data.
Adjusted earnings per share (EPS) are expected in the range of $1.27 to $1.41 per share, above the consensus expectation of $1.21.
Also buoying the company’s shares was its 2Q earnings beat, with the company reporting revenue for the period of $2.09 billion, which was flat year-over-year but ahead of the consensus expectation of $2.02 billion.
The company noted that automotive and industrial end-markets drove growth during the quarter, contributing 80% of revenue.
Its adjusted EPS fell slightly from the year-ago quarter, down from $1.34 to $1.33, but topped expectations of $1.21 per share.
"ON Semi delivered another excellent quarter, ahead of guidance on revenue and earnings per share, driven by growth in automotive and industrial," the company’s CEO Hassane El-Khoury said in a statement.
"Our brownfield capacity expansion is creating an opportunity for ON Semi to gain share in silicon carbide by capitalizing on the rapidly accelerating demand for electrification and renewable energy."
ON Semiconductor shares added 3% at US$108.20 on Monday afternoon.
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