Shares of ON Semiconductor Corp. (NASDAQ:ON) dropped over 1.5% in early trading session on Friday as the firm is expected to report earnings that are higher year over year when it reports results for the quarter ended December 2022. This widely known consensus outlook provides a good sense of the company’s earnings picture, but how actual results compare to these estimates is a powerful factor that could impact its stock price in the near term.
If these key numbers are better than expected, the earnings report, which is expected to be released on February 6, 2023, may help the stock move higher. On the other hand, if they fail, the stock may fall.
While management’s discussion of business conditions on the earnings call will largely determine the sustainability of the immediate price change and future earnings expectations, it’s useful to have a sense of the odds of a positive EPS surprise.
The Most Accurate Estimate for ON Semiconductor Corp. is lower than the Zacks Consensus Estimate, indicating that analysts have recently become bearish on the company’s earnings prospects. As a result, the Earnings ESP is -1.64%.
ON Semiconductor Corp. investors will be hoping for strength as it approaches its next earnings release on February 6, 2023. ON Semiconductor Corp. is expected to report earnings of $1.27 per share on that day, representing a 16.51% increase year over year. Our most recent consensus forecast calls for quarterly revenue of $2.08 billion, a 12.66% increase over the previous year.
Microchip Technology (NASDAQ: MCHP) Increases Quarterly Cash Dividend
Microchip Technology Incorporated (NASDAQ: MCHP) announced that its Board of Directors declared a quarterly cash dividend of 35.8 cents per share on its common stock. The dividend will be paid to stockholders of record on February 21, 2023, on March 7, 2023. Microchip began paying quarterly cash dividends in the third quarter of fiscal year 2003, and the dividend has been increased 76 times since then.
“Microchip’s financial performance in the December 2022 quarter was extremely strong, resulting in solid cash generation and significant debt reduction,” said Executive Chair Steve Sanghi. “Today, our Board of Directors approved a 41.5% increase in our dividend to 35.8 cents per share, up from 25.3 cents per share in February 2022. This marks 82 consecutive quarters of dividend payments for Microchip and reflects our confidence in our company’s ability to generate cash as well as our ongoing commitment to returning capital to stockholders.”
Allegro MicroSystems, Inc. (NASDAQ:ALGM) Fiscal Third Quarter 2023 Results
Allegro MicroSystems, Inc. (NASDAQ:ALGM) announced financial results for its third quarter 2023 that ended December 23, 2022.
President and CEO of Allegro MicroSystems, Vineet Nargolwala stated that their team produced yet another quarter of outstanding results. Growth is being driven by momentum in e-Mobility applications such as xEV and ADAS, as well as strong demand across our magnetic sensor and power IC product portfolios.
He added, sales in their automotive division increased by 30% year on year, with e-Mobility accounting for a record 43 percent of automotive sales. They also had another record quarter in their Industrial business, driven by continued growth in the end markets of Clean Energy and Industrial Automation. In addition to our top-line performance, our fiscal third-quarter gross margin increased to record levels as a result of higher sales of feature-rich products and favorable foreign exchange. This enabled them to achieve record GAAP and non-GAAP operating margins of 26 and 30 percent in the quarter, respectively. GAAP and non-GAAP diluted EPS increased 94 and 84 percent year over year, highlighting their operating leverage. Allegro expects to outperform the broader end markets due to their strategic alignment to fast-growing secular megatrends.
