WDC - ON Semiconductor leads chips higher as investors await slew of earnings

2023-07-31 11:07:31 ET

Semiconductor stocks moved mostly higher on Monday after strong results and guidance from ON Semiconductor ( NASDAQ: ON ), while investors awaited several key earnings reports from the industry.

ON ( ON ) rose more than 3% after the company said it earned $1.33 per share, excluding one-time items, during the second-quarter, as revenue checked in at $2.09B, even with the year-ago period.

The company said it had a record in automotive-related revenue, as sales for the segment rose 35% to surpass $1B. Industrial related revenue rose 5% year-over-year to $609.3M.

Analysts were expecting the company to earn $1.21 per share on $2.02B in sales.

Looking ahead, ON ( ON ) said it expects adjusted earnings to be between $1.21 and $1.35 per share, with revenue between $2.1B and $2.2B.

Both estimates were above Wall Street's forecast, as analysts were expecting the Phoenix, Arizona-based company to earn $1.20 per share, excluding one-time items, on $2.05B in sales.

Qualcomm ( NASDAQ: QCOM ) shares rose nearly 2% as investment firm Bernstein said the company's upcoming results are likely to show continued smartphone weakness, but there are signs the weakness is abating.

"Smartphones remain very weak (with shipments down ~8% YoY in Jun-Q); however this is a (slight?) improvement over Mar-Q's 15% YoY decline, and the ~1% sequential reduction in shipments was actually a bit above what we saw during the last 2 years so smartphone shipments themselves, while not great, do appear to be improving marginally (or at least getting less bad)," analyst Stacy Rasgon wrote.

San Diego-based Qualcomm ( QCOM ) is slated to report fiscal third-quarter results on August 2.

Monolithic Power Systems ( NASDAQ: MPWR ) rose 2.6% ahead of its own quarterly earnings report. A consensus of analysts expect the company to earn $2.81 per share on $440.8M in revenue.

Other semiconductor companies reporting after the close of trading include Lattice Semiconductor ( LSCC ) and Rambus ( RMBS ), both of which saw fractional moves to the downside.

Western Digital ( WDC ) also is slated to report quarterly results after the close of trading on Monday.

Most other semiconductor stocks in the S&P 500 saw fractional moves on Monday, including AMD ( AMD ), Nvidia ( NVDA ) and Micron Technologies ( MU ).

Intel ( INTC ) shares fell 1.5% despite reporting quarterly results and guidance last week that topped estimates.

More on ON Semiconductor

• ON Semi slips even as it secures nearly $2B in agreements with solar manufacturers
• ON Semiconductor slips after Rosenblatt downgrades with Q2 results waiting
• Top 10 Tech Stocks For H2 2023

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