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Shares of ON Semiconductor (NASDAQ:ON) are down over 4% in premarket Monday after the chipmaker reported Q2 results.
ON reported an adjusted EPS of $1.34 on revenue of $2.09 billion to top the consensus of adjusted EPS of $1.26 on revenue of $2.02 billion.
The company said it expects to report adjusted EPS of $1.25 to $1.37 for the current quarter, easily ahead of the consensus of $1.22. Revenue is seen at between $2.07 billion and $2.17 billion, again better than the consensus of $2.02 billion.
However, ON’s outlook for an adjusted gross margin of 48% to 50% (consensus 49.3%) may have a negative impact on shares.
Moreover, investors weren’t too happy about the management’s commentary.
“While we are optimistic about our outlook, we remain sensitive to dynamic market conditions,” said Hassane El-Khoury, president and CEO of ON.
ON shares rallied sharply in July after plunging over 30% YTD. Net-net, ON stock price is down about 5% YTD prior to the Monday open.
