ON Semiconductor early Monday beat Wall Street's targets for the second quarter, thanks to strong sales of chips for automotive and industrial applications. It also raised expectations for the current period. ON stock jumped to a record high on the news.
The Scottsdale, Ariz.-based company, also known as Onsemi, earned an adjusted $1.33 a share on sales of $2.09 billion in the June quarter. Analysts polled by FactSet had predicted Onsemi earnings of $1.21 a share on sales of $2.02 billion. In the year-earlier quarter, Onsemi earned an adjusted $1.34 a share on sales of $2.085 billion.
Automotive chip sales rose 35% year over year in the second quarter and exceeded $1 billion. Industrial chip sales increased 5% to $609.3 million. Together automotive and industrial chip sales accounted for 80% of Onsemi's revenue in the period.
For the current quarter, Onsemi predicted adjusted earnings of $1.34 a share on sales of $2.15 billion. That's based on the midpoint of its guidance. Analysts had called for earnings of $1.21 a share on sales of $2.07 billion in the third quarter.
ON Stock Pops After Report
On the stock market today, ON stock surged 2.5% to close at 107.75. Earlier in the session, it notched a record high of 111.32.
On May 26, ON stock broke out of a 14-week consolidation pattern at a buy point of 87.55, according to IBD MarketSmith charts.
"Our operational excellence and winning formula have proven to be the right strategy in sustaining our financial performance amid a soft macroeconomic environment," Chief Executive Hassane El-Khoury said in a news release.
Onsemi On IBD Tech Leaders List
Onsemi makes power control and sensing chips for automotive, industrial and other applications.
ON stock ranks fifth out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. Onsemi has an IBD Composite Rating of 92 out of 99. The Composite Rating scores a stock's key growth metrics against all other stocks regardless of industry group.
Further, ON Stock is on the IBD Tech Leaders list.
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