ON Semiconductor Corp (NASDAQ:ONNN) has reported third-quarter revenue and earnings that topped analysts’ expectations but fourth-quarter guidance that disappointed the market, sending its shares sharply lower in early Monday morning trading.
The Arizona-based chipmaker reported a 0.5% decline in revenue to $2.18 billion for the quarter, while adjusted earnings per share (EPS) fell 4.1% to $1.39, beating the consensus estimates of $1.35, according to Zacks Investment Research.
“Our disciplined approach and execution resulted in another solid quarter, demonstrating the resilience in our business amid market softness,” ON Semi president and CEO Hassane El-Khoury commented in a statement.
“We continue to drive structural improvements and efficiencies, most notably in our silicon carbide operation, with the completed expansion of the world’s largest, state-of-the-art silicon carbide fab in South Korea for 150- and 200-millimeter wafers.”
The company has guided for 4Q revenue of $1.95 billion to $2.05 billion and adjusted EPS of $1.13 to $1.27.
Its shares were down 15% at $70.56 by 10am in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com