ON Semiconductor Corp. (NASDAQ: ON – $22.06) reported revenue of $1.456 billion, up about 9% from a year ago and earnings per share of $0.46 compared to $0.36 in last year’s second quarter. Wall Street was expecting earnings of $0.45 per share on revenue of $1.43 billion. Gross margin was 38.1% and ON generated $115.6 million in free cash flow. Based on product booking trends and backlog levels management anticipates that total revenue in the third quarter of 2018 will be approximately $1.485 to $1.535 billion compared to analysts’ targets of $1.49 billion and earnings of $0.48 per share. The full-year profit tally should be around $1.78 per share vs. 2017’s $1.44.
ON Semiconductor stock is an interesting investment option for long-term aggressive accounts. Over the past twelve months, shares of the company have risen about 50% in value. However, Phoenix-based ON continues to experience solid booking trends supported by cyclical tailwinds and heightened analog demand driven by growth of the Internet-of-Things market and autonomous vehicle investments. These trends, along with a high-profile clientele, could keep top and bottom-line growth on tap for the next couple of years.