onsemi is all set to unveil its first-quarter 2024 financial results on April 29.
Forecasts for Q1 2024 project revenues to range from $1.80 billion to $1.90 billion, with anticipated earnings falling between 98 cents to $1.10 per share.
The Zacks Consensus Estimate places Q1 earnings at $1.04 per share, unmoved in the last month, signifying a drop of 12.61% from the prior year’s quarter.
Revenue estimates stand at $1.85 billion, marking a 5.52% decrease from the corresponding period last year.
Delving into onsemi’s Performance
Among the accolades in the past four quarters, onsemi has consistently surpassed the Zacks Consensus Estimate, with an average surprise of 6.57%.
Now, as we look ahead to the impending announcement, let’s explore the factors likely to have influenced their Q1 performance.
Factors that Could Impact Q1 Performance
onsemi is likely to have benefited in Q4 from increased product adoption in automotive and industrial sectors, notably in realms like electric vehicles, advanced driver-assistance systems, and energy infrastructure.
The company’s diversified strength in industrial, computing, consumer, and automotive markets, across silicon carbide and insulated-gate bipolar transistor-based products, remains a positive indicator.
Add to this, onsemi’s market share gains in the automotive segment, courtesy of its silicon carbide dominance and innovative power and sensing solutions.
Furthermore, their EliteSIC silicon carbide modules are enhancing efficiency, reducing inverter weight, extending electric vehicle range, and boosting overall performance.
Despite such strengths, market challenges loom large as softness across all sectors due to sluggish demand and inventory adjustments could have hindered onsemi’s revenue growth in the to-be-reported quarter.
Insights from Our Model
According to the Zacks model, an auspicious blend of positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of outperforming earnings projections. Alas, this scenario does not fit precisely here.
onsemi currently holds an Earnings ESP of 0.00% alongside a Zacks Rank #4 (Sell). For stock selection strategies pre-earnings, explore our Earnings ESP Filter.
Promising Stocks to Ponder
To gear up for possible earnings triumphs in the forthcoming reports, consider these companies with the right amalgamation for an earnings beat:
Arista Networks (ANET) possesses an Earnings ESP of +2.49% coupled with a Zacks Rank #1. View the entire roster of Zacks #1 Rank stocks here.
Advanced Micro Devices (AMD) boasts an Earnings ESP of +28.33% alongside a Zacks Rank #2.
Silicon Motion Technology (SIMO) flaunts an Earnings ESP of +5.96% and a Zacks Rank #2.
Stay informed regarding upcoming earnings releases using the Zacks Earnings Calendar.