ON Semiconductor Corp. (NASDAQ: ON) released its second-quarter financial results before the markets opened on Monday. The company said that it had $0.42 in earnings per share (EPS) and $1.35 billion in revenue, which compares with consensus estimates of $0.42 in EPS and $1.38 billion in revenue. In the same period of last year, it said it had EPS of $0.46 on revenue of $1.46 billion.
During the latest quarter, ON Semiconductor announced that it signed a definitive agreement to acquire, in a phased transaction, a 300mm fab located New York and related assets from Global Foundries.
The company also announced the close of its previously announced acquisition of Quantenna Communications, a leader in high-performance Wi-Fi semiconductors.
Looking ahead to the third quarter, the company expects to see revenue in the range of $1.355 billion to $1.405 billion with a gross margin of 36.7% to 37.7%. The consensus estimates call for $0.47 in EPS and $1.46 billion in revenue for the quarter.
Keith Jackson, president and CEO of ON Semiconductor, commented:
Business conditions continue to be soft, and we expect to see sub-seasonal demand trends in the near-term, as geopolitical factors will likely continue to weigh on demand. Despite near-term weakness in demand, key secular trends driving our business remain intact. Against a backdrop of soft demand and limited visibility, we continue to focus on execution to mitigate the impact of current softness in demand. We remain confident in our strategy of focusing on secular megatrends in automotive, industrial, and cloud-power end-markets, and we are prudently investing to further strengthen our position in these markets.
Shares of ON Semiconductor traded down more than 7% early Monday, at $18.54 in a 52-week range of $14.55 to $23.54. The consensus price target is $25.06.