Home News Onsemi shares rise after chipmaker sets auto revenue record

Onsemi shares rise after chipmaker sets auto revenue record

by SuperiorInvest

Key takeaways

  • Onsemi shares rose on Monday as the semiconductor and power sensor maker beat quarterly sales and profit estimates.
  • The chipmaker’s annual automotive revenue for 2023 hit an all-time high.
  • Chief Executive Hassane El-Khoury said Onsemi was able to “navigate uncertain market conditions.”

Onsemi (ON) shares rose more than 9% in intraday trading on Monday after the semiconductor and power sensor maker reported better-than-expected quarterly results and record annual auto sales.

The chipmaker posted fourth-quarter earnings per share (EPS) of $1.25, beating estimates. Revenue fell 4% from a year earlier to $2.02 billion, slightly above forecasts. Onsemi said its automotive revenue in 2023 soared 29% to an all-time high of $4.3 billion. Full-year revenue of $8.25 billion and earnings per share (EPS) of $5.16 were better than expected.

In the fourth quarter, sales at the company’s Power Solutions Group rose 4% to $1.09 billion. They fell 11% in their Advanced Solutions Group to $624.6 million and fell 13% to $307.7 million in their Intelligent Sensing Group.

CEO Hassane El-Khoury said 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.”

Onsemi shares rose 9.7% to $77.61 per share at approximately 3:30 p.m. ET on Monday following the news. Despite Monday’s gain, shares have lost 3.5% over the past year.

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