Boston, MA 02/10/2014 (wallstreetpr) – ON Semiconductor Corp (NASDAQ:ONN) stock continue to be the revelation in the chip industry posting excellent results than earlier anticipated. The company stock has been on a roll at the back of a 52 week high which rose even further by 8.5% as soon as the positive results were posted.
ON Semiconductor Corp (NASDAQ:ONN)’s stock came in at an earnings per share of $0.17 beating consensus estimates of $0.14 with total revenues of $718 million above estimates of $691 million. ONN estimates quarter revenues of $695-$725 million for the current quarter which is above consensus estimates of $676.09 million.
ONN CEO Keith has been quick to point out that the positive results for the fourth quarter can be attributed to heightened business trends during the fourth quarter with the trend expected to continue in the current quarter. There has been an improvement in the macroeconomic environment especially in the developed economies that have continued to impart ONN sales.
ON in numbers
ON Semiconductor Corp (NASDAQ:ONN) automobile market recorded the best results in the fourth quarter of F2013 contributing a total of 27% to the total revenue. The worst of results came in from its communication market which saw a slump of 18% mainly due to a broad-based inventory correction that had not been anticipated in the smart phone industry. Investors are positioning themselves for a better F2014 with the chip sector experiencing an increase in demand.
Multiple things are expected to go right in 2014 as the market of computers is expected to pick thereby increasing the demand market for chips that ON Semiconductor Corp (NASDAQ:ONN) aims at supplying. The acquisition of Sanyo has notably been a headache for ON for the past 2 years since its acquisition in 2011. The breakeven point seems to have stabilized after all as Sanyo tries to pick itself in remarket. Total revenue in the fourth quarter totaling $170 million against $157 million in the third quarter seems to be positive results going forward that should signal the start of profits for ONN in the coming quarters through this subsidiary.
Analysts have weighed in into ON Semiconductor Corp (NASDAQ:ONN) stocks giving good ratings in the market, notably are the Analysts at Pacific Crest who seemed to have been impressed by the stock thereby raising their price target from $9 to $10 in a recent note to investors. Analysts at Morgan have also raised their price target from $6.50 to $7.
ON Semiconductor Corp (NASDAQ:ONN) stock closed the week on Friday Feb 7, 2014 at a high of $9 a massive increment of 8.59% compared to Thursday trading session.
