ON Semiconductor dips 8% despite a Q3 beat
sankai

ON Semiconductor (ON) Q3 topline revenue surges 26% Y/Y to $2.2B, beating consensus by $80M. 
GAAP and non-GAAP gross margin of 48.3% and 49.3%, respectively.
GAAP operating margin of 19.4%. Record non-GAAP operating margin of 35.4% increased ~ 1,100 bps Y/Y.
GAAP EPS of $0.70, flat vs. last year. Record non-GAAP EPS of $1.45 as compared to $0.87, beats consensus by $0.14.
Free cash flow of $731M and record LTM free cash flow margin of 21.0%.
Q4 Outlook: Revenue in the range of $2.01B to $2.14B vs. consensus of $2.08B; Adjusted EPS in the range of $1.18 to $1.34 vs. consensus of $1.25.
âonsemi has delivered another quarter of record results stemming from continued growth in our focus markets of automotive and industrial. We remain confident in our long-term outlook as we continue to win where semiconductor content growth is accelerating for vehicle electrification, energy infrastructure, advanced safety and factory automation. We have taken a proactive and deliberate approach over the last several quarters to make the structural changes required to strengthen our business, and we are in a better position than ever to navigate the current uncertainty in the market,â said Hassane El-Khoury, president and CEO of onsemi.
Stock has a SA Authors rating of Hold with commentary that says: 'ON Semiconductor: Automotive Market Is Booming'
Sell side rating of Buy with target price of $74.83; Quant rating of Strong Buy with highest grades given to profitability and momentum.
Previously (Oct. 31): ON Semiconductor Non-GAAP EPS of $1.45 beats by $0.14, revenue of $2.2B beats by $80M