Onsemi (NASDAQ: ON) has just released its first-quarter 2024 financial results, and the numbers are impressive. The company reported a revenue of $1,862.7 million for Q1 2024, a slight decrease from the previous quarter's $2,018.1 million, but a 5% decrease from the same period last year, which stood at $1,959.7 million. Despite the decline in revenue, Onsemi has managed to maintain strong gross margins, with a GAAP gross margin of 45.8% and a non-GAAP gross margin of 45.9% for the first quarter of 2024.
The company has also shown resilience in its operating margins, reporting a GAAP operating margin of 28.2% and a non-GAAP operating margin of 29.0% for Q1 2024, compared to 30.3% and 32.2% in the previous quarter, and 28.8% and 31.6% in the same period last year, respectively.
Net income attributable to On Semiconductor Corporation for the first quarter of 2024 was reported at $453.0 million, down from $562.7 million in the previous quarter and $461.7 million in the first quarter of 2023. Diluted earnings per share also saw a decrease, with GAAP diluted earnings per share at $1.04 and non-GAAP diluted earnings per share at $1.08 for Q1 2024, down from $1.28 and $1.19 in the previous quarter, and $1.03 and $1.25 in the same period last year.
Onsemi's business segments saw mixed results, with the Power Solutions Group (PSG) experiencing a 2% year-over-year increase but a 9% sequential decrease in revenue, while the Advanced Manufacturing Group (AMG) and Intelligent Sensing Group (ISG) reported a 6% year-over-year decrease in revenue.
Looking ahead, Onsemi has provided its projected second-quarter 2024 GAAP and non-GAAP outlook. The company expects revenue in the range of $1,680 to $1,780 million for the upcoming quarter, with a gross margin of 44.1% to 46.1% for GAAP and 44.2% to 46.2% for non-GAAP.
Onsemi's President and CEO, Hassane El-Khoury, commented on the company's performance, stating that the structural changes made to the business over the last three years have enabled Onsemi to sustain its gross margin despite challenging market conditions. El-Khoury also emphasized the company's focus on execution and long-term growth, particularly in the power and sensing technologies sector.
Onsemi is driving disruptive innovations to build a better future, with a focus on automotive and industrial end-markets, including vehicle electrification and safety, sustainable energy grids, industrial automation, 5G, and cloud infrastructure. The company is recognized as a Fortune 500® company and is included in the Nasdaq-100 Index® and S&P 500® Index.
For those interested in the financial details, Onsemi will host a conference call at 9 a.m. Eastern Time on April 29, 2024, to discuss the first-quarter results. The company will also provide a real-time audio webcast of the teleconference on the investor relations page of its website at www.onsemi.com. Following these announcements, the company's shares moved 1.9%, and are now trading at a price of $69.32. Check out the company's full 8-K submission here.
