On Semiconductor ON is slated to release its fourth-quarter 2024 results on Feb. 10.

For fourth-quarter 2024, ON expects revenues between $1.71 billion and $1.81 billion. Earnings are expected to be in the range of 92 cents to $1.04 per share.

The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 98 cents per share, unchanged in the past 30 days. This indicates a decline of 21.6% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $1.76 billion, suggesting a decline of 12.87% from the year-ago quarter’s reported figure.

onsemi’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.39%.
 

Let us see how things have shaped up prior to this announcement.

Factors Likely to Have Influenced ON’s Q4 Performance

On Semiconductor is suffering from muted demand environment with ongoing inventory digestion and slow end-demand, particularly in North America and Europe. Automotive continues to be weak with slowing electric vehicle sales. Industrial end-market remains sluggish except for some domains in utility-scale solar and aerospace and defense.

However, onsemi’s expanding power portfolio, which offers solutions like F5BP IGBT and hybrid SiC and IGBT modules is expected to help it gain market share in renewable energy. Expanding image sensor portfolio is noteworthy. The SWIR technology is helping ON expand its industrial offerings in agriculture, medical imaging, inspection and aerospace and defense applications.

The shift toward higher-resolution image sensors for Advanced Driver Assistance Systems is expected to have contributed to the top-line growth in the trailing four quarters. onsemi’s revenues from 8-megapixel image sensors grew significantly, indicating strong market demand for these higher-resolution image sensors.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

onsemi has an Earnings ESP of -1.48% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

BILL Holdings BILL currently has an Earnings ESP of +10.90% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings shares have gained 26.4% in the trailing 12 months. BILL is set to report its second quarter of fiscal 2025 results on Feb. 6.

Lumentum LITE has an Earnings ESP of +17.01% and a Zacks Rank #3 at present. 

Shares of Lumentum have jumped 52.1% in the trailing 12 months. LITE is slated to report second-quarter fiscal 2025 results on Feb. 6.

Yelp YELP currently has an Earnings ESP of +12.87% and a Zacks Rank of 3.

Yelp shares have declined 10% in the trailing 12 months. YELP is set to report its fourth-quarter 2024 results on Feb. 13.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Yelp Inc. (YELP) : Free Stock Analysis Report

ON Semiconductor Corporation (ON) : Free Stock Analysis Report

Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report

BILL Holdings, Inc. (BILL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research