ON Semiconductor reports whopping jump in profit, sales thanks to healthy sector

ON Semiconductor Corp. reported a 266 percent increase in profit and a 52 percent increase in revenue year over year due to a healthy semiconductor market.

The Phoenix-based semiconductor manufacturer (Nasdaq: ON) announced its second-quarter earnings today.

ON reported net income of $94.4 million, or 22 cents per share, on revenue of $1.3 billion for the quarter ended June 30.

That compares to net income of $25.8 million, or 6 cents per share, on revenue of $877.8 million for the same quarter a year ago.

Keith Jackson, president and CEO of ON Semiconductor, said “impressive margin expansion and strong free cash flow generation in the second quarter clearly demonstrate the strength of our operating model.

“Along with expansion in our margins, our revenue momentum remains strong, driven by strengthening customer engagement for power, analog and sensor semiconductor solutions,” Jackson said. “Customers are increasingly relying on us as a provider of enabling technologies for automotive, industrial and communications applications.”

The good news continues as Jackson said “commentary from our global customers and macro-economic data point to steadily improving demand for our products from most end-markets and geographies.

“Along with steadily improving demand environment, industry-wide supply side dynamics remain generally healthy with stable inventory levels and disciplined capacity additions,” he said.

ON’s stock closed trading today at $16.33, which is closer to its 52-week high of $16.93 than its low of $10.03.

https://www.bizjournals.com/phoenix/news/2017/08/07/on-semiconductor-reports-whopping-jump-in-profit.html