On February 5, 2024, ON Semiconductor Corporation (ON, Finance) released its 8-K filing detailing its fourth quarter and full year 2023 financial results. The company is a leading supplier of power semiconductors and sensors, primarily serving electric utilities. The automotive and industrial markets reported a record year, with vehicle sales up 29% year-on-year. This growth is particularly significant as it underscores ON Semiconductor's strategic focus on high-growth areas such as electric vehicles, autonomous vehicles, industrial automation and renewable energy.
Financial performance highlights
ON Semiconductor Company (ON, Financials) demonstrated resilience in a challenging market, delivering GAAP net income of $2,183.7 million, up from $1,902.2 million in 2022. The company's diluted earnings per share also increased, rising to $4.89. in 2023, from $4.25 the previous year. Although full-year revenue was down slightly by 1% to $8.253 billion, the company's focus on operational efficiencies and strategic growth areas paid off.
However, the company faced headwinds, with its gross profit margin declining year-on-year from 49.0% in 2022 to 47.1% in 2023. This contraction reflects the competitive and dynamic nature of the semiconductor industry, where pricing pressures and cost controls remain. important element.
Segment performance and future outlook
The Power Solutions Group (PSG) and Intelligent Sensing Group (ISG) segments experienced growth, with PSG up 6% and ISG up 3% year over year. Conversely, Advanced Solutions Group (ASG) was down 12%. ON Semiconductor expects first quarter 2024 revenue to be in the range of $18 million to $1.9 billion, with non-GAAP gross margins in the range of 44.5% to 46.5%.
President and CEO Hassan El Khoury expressed confidence in the company's direction, saying:
Our momentum continued last year, with record auto revenue and 4x year-over-year growth in silicon carbide revenue. We continue to transform our business by building resilience into our models, enabling us to navigate uncertain market conditions and deliver more predictable and sustainable results. ”
Focuses on strategic initiatives that drive ON Semiconductor's success.
Investor and Analyst Insights
Investors and analysts may find ON Semiconductor's performance in the automotive space particularly attractive as it aligns with global trends toward vehicle electrification and advanced safety features. yeah. The company's strategic shift toward high-growth markets and upcoming analog and mixed-signal platforms could position it well for future growth.
ON Semiconductor will host a conference call to discuss these results, provide further insight into the company's strategy and outlook, and provide an opportunity for the financial community to take a deeper dive into the company's performance and future plans.
Interested parties are encouraged to review the entire 8-K filing for detailed financial information, including income statements, balance sheets, and cash flow statements.
Value investors and potential GuruFocus.com members can find comprehensive coverage and analysis of ON Semiconductor's earnings and strategic direction on GuruFocus.com, as well as the company's financial health and investment potential. Gain valuable insight into your
For more information, see ON Semiconductor Corp's full 8-K earnings release here.
