ON Semiconductor (ON) Stock Falls on Disappointing Q1 Revenue
NEW YORK (TheStreet) -- ON Semiconductor (ON) - Get Report stock is down by 2.92% to $9.14 in late morning trading on Monday, after the chip maker reported lower-than-expected revenue for the 2016 first quarter.
The Phoenix-based company reported revenue of $817.2 million for the quarter ended April 1, while Wall Street analysts were anticipating revenue of $820.3 million.
Earnings of 17 cents per share were above estimates that called for earnings of 15 cents per share for the latest quarter.
The 3% year-over-year decline in revenue was driven by weak sales from semiconductors for computing, consumer and industrial applications.
"During the first quarter, we noticed a stabilization in business conditions, although a few end-markets experienced greater than expected softness," CEO Keith Jackson said in a statement.
ON Semiconductor set its second quarter revenue guidance at $835 million to $875 million, in line with estimates of $855 million.
In aStocks Under $10 post, TheStreet's David Peltier noted that the company is set to close the acquisition of Fairchild Semiconductor (FCS) by the middle of the year.
"The increased scale and $150 million of potential annual cost synergies should further boost the company's future profitability," Peltier added.
(ON Semiconductor is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)
Separately, ON Semiconductor has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's increase in net income, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
You can view the full analysis from the report here: ON
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
