On Semiconductor Surges on Earnings Beat

On Semiconductor's(ONNN Quote - Cramer on ONNN - Stock Picks) second-quarter profit fell from a year earlier, but the chipmaker beat Wall Street expectations, sending its stock surging.

The Phoenix, Ariz., chipmaker said that sales for the three months ended June 29 totaled $381.2 million, up 1.6% year over year and slightly better than the $379.7 million expected by analysts.

On Semi reported net income of $63.3 million, or 21 cents a share, in the quarter, vs. $67.5 million, or 19 cents a share, at this time last year.

Analysts polled by Thomson Financial expected On Semi to earn only 18 cents a share.

Shares of On Semi jumped 10%, or $1.11, to a new 52-week high of $12.12 in midday trading Tuesday.

On Semi CEO Keith Jackson said that new product introductions aimed at the computing, consumer electronics and wireless markets, as well as the seasonally strong second half of the year, have boosted the company's backlog, which began the current quarter up 10% sequentially.

The company projected that revenue in the current quarter will range between $393 million and $403 million. The average analyst expectation called for revenue of $397.5 million in the third quarter, with EPS of 21 cents.

On Semi didn't provide an earnings forecast but said it expects its average selling prices in the third quarter to be down roughly 2% sequentially, while gross profit margin should remain roughly flat from the second quarter's 41% level.