Why Shares of On Semiconductor Jumped 9% Today
Semiconductor maker On Semiconductor (NASDAQ: ON) posted great fourth-quarter results and even better guidance for the year now underway, sending its stock higher to the tune of 9% as of 3:50 p.m. ET Monday, according to data from S&P Global Market Intelligence.
The global semiconductor shortage may be a problem for many organizations, but for chipmakers like On Semiconductor, it's actually a boon. Last quarter's top line of more than $1.84 billion was nearly 28% better than the year-earlier figure, capping off a fiscal year of comparable growth. Operating earnings of $1.09 per share for the final quarter of 2021 rolled in three times greater than the comp of $0.35, topping estimates of $0.94.
"Operating income and free cash flow increased 6 times faster than the revenue as we focus our portfolio on secular megatrends of electric vehicles, ADAS, alternative energy and industrial automation," CEO Hassane El-Khoury said in a press release. "We continue to expand gross margins as we shift our mix into these high-value strategic markets while ramping new products, rationalizing our manufacturing footprint, and improving our overall cost structure."
Source Fool.com