onsemi (ON) falls 7% on weak guidance

On Semiconductor (NASDAQ: ON) shares fell more than 7% after the chipmaker offered a weaker-than-expected outlook for this quarter.

The company's forecast for adjusted earnings per share is $1.13 to $1.27 fell short of the average analyst estimate of $1.36. Moreover, ON Semiconductor's projected adjusted gross margin is in the range of 45.5% to 47.5%, while the estimate was 47.1%.

In the third quarter, the company reported revenue of $2.18 billion, representing a 0.5% decrease year-over-year, slightly ahead of the estimate of $2.15 billion. The adjusted earnings per share for the third quarter were $1.39, compared to $1.45 in the previous year, and exceeded the estimate of $1.34.

"Our disciplined approach and execution resulted in another solid quarter, demonstrating the resilience in our business amid market softness," said Hassane El-Khoury, president and chief executive officer of onsemi.

By Senad Karaahmetovic

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