ON Semiconductor (NASDAQ: ON – $22.08) manufacturer of power and data management semiconductors and standard semiconductor components reported total revenue in the first quarter of $1.38 billion, 4% below 2017’s first period. Adjusted revenue, was up about 7% compared to the first quarter of last year, which excluded the one-time impact from a change in revenue recognition. Adjusted earnings per share was $0.40, a penny above Street expectations and 48% above the year ago first period. The company stated in their earning’s release:
“We are seeing an upwards inflection in long-term demand for our products, driven by strengthening engagement with our customers on their long-term strategic projects and broad-based acceptance of our products for automotive and industrial markets,” said Keith Jackson, president and CEO. “Along with robust revenue performance, we continue to deliver impressive margin performance driven by solid execution, improving mix, and operating leverage. We continue to make strong progress towards our target financial model.”
The company also lifted second quarter guidance. Solid booking trends remain intact across the broader scope of the business. The semiconductor industry continues to experience consolidation, and recent customer inquiries made by ON suggest that business ought to remain healthy over the near term. The shares, struggling of late along with many semi names, can be held for further gains in aggressive accounts.