ON Semiconductor (NASDAQ:ON) saw its stock tumble 8% intra-day today after reporting fourth-quarter earnings that missed expectations and issuing a significantly weaker-than-anticipated outlook for the first quarter of 2025.
The company posted adjusted earnings per share of $0.95, coming in just below analysts’ consensus estimate of $0.97. Revenue fell to $1.72 billion, missing projections of $1.76 billion and marking a sharp decline from $2.1 billion in the same period last year.
However, it was the first-quarter guidance that sent investors scrambling. ON Semiconductor expects adjusted earnings per share between $0.45 and $0.55, falling far short of Wall Street’s estimate of $0.89. Revenue projections of $1.35 billion to $1.45 billion also came in well below the expected $1.69 billion, signaling a challenging start to 2025.
Despite the disappointing near-term outlook, the company emphasized its resilience in navigating industry downturns. CEO Hassane El-Khoury pointed to structural improvements made over the past four years, positioning the company to withstand prolonged market volatility.
On a positive note, ON Semiconductor generated strong free cash flow in 2024, tripling year-over-year to $1.2 billion. The company returned 54% of that free cash flow to shareholders through stock buybacks, reinforcing its commitment to long-term value creation.