By Sam Boughedda
Investing.com — On Monday, semiconductor chip supplier ON Semiconductor Corporation (NASDAQ:ON) reported fourth-quarter earnings and revenue above analyst expectations, resulting in a share price rally.
ON shares are up around 6.5% following the report, building on Friday's 2.15% gain and reclaiming some of its year-to-date losses.
The Phoenix, Arizona-based business recorded earnings per share of $1.09 on a record quarterly revenue of $1.85 billion. Analyst forecasts suggested earnings of $0.93 per share on revenue of $1.79 billion.
The company also reported a record yearly revenue of $6.74 billion for 2021, alongside a record quarterly non-GAAP operating margin of 28.6%.
In addition, guidance was well above estimates, with earnings per share for Q1 expected to be between $0.90 to $1.02 per share and revenue forecast at between $1.85 to $1.95 billion. Analysts expect the company to report earnings of $0.81 per share on revenues of $1.78 billion.
"Our disciplined execution on transformation initiatives in 2021 resulted in record financial performance and achievement of our financial targets ahead of stated timeline. Revenue for 2021 grew 28.3%," commented Hassane El-Khoury, President and CEO of ON Semiconductor.
"Outlook for our business remains robust as evidenced by over 60% year-over-year growth in our design win funnel driven by our highly differentiated intelligent power and sensing portfolio," he added.