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Investing.com -- Shares in Onsemi (NASDAQ:ON) rose more than 2% in premarket trading Monday after the company reported first-quarter results that beat analyst expectations and issued an upbeat guidance for the current quarter.
The semiconductor maker posted Q1 earnings per share (EPS) of $0.55, exceeding the consensus estimate of $0.52.
Revenue for the quarter declined 22% year-over-year to $1.45 billion, also above the $1.41 billion expected by analysts.
Adjusted gross margin fell to 40% from 45.9% a year earlier, roughly in line with the 40.1% estimate. Adjusted operating margin dropped to 18.3%, down from 29% a year ago, but still beat the 17.3% consensus.
“Our results in the first quarter reflect the disciplined approach we have maintained through this downturn – managing our cost structure, right-sizing our manufacturing footprint, and rationalizing our portfolio – enabling us to generate increased free cash flow," said Hassane El-Khoury, president and CEO of Onsemi.
“We continue to see strong design win momentum, driven by the industry-leading performance of our products and have secured key wins with major global customers across all end-markets.”
For the second quarter, the company expects adjusted EPS between $0.48 and $0.58, compared to the average analyst forecast of $0.51.
Revenue is projected to range from $1.4 billion to $1.5 billion, above the $1.412 billion consensus.
The chipmaker anticipates adjusted operating expenses between $285 million and $300 million, slightly below the $301.5 million estimate, and sees gross margin between 36.5% and 38.5%, versus expectations for 39%.