Earnings to watch: onsemi (ON) reports Q3 results tomorrow

What happened

Analog chips maker onsemi will report its Q3 results this Monday after market hours. Last quarter, it reported revenue of $1.60 billion, up 9.2% year on year, and beat analysts' revenue expectations. This quarter, the market expects revenue to grow 10% year on year.

Confirmed

Global impact / market context

onsemi's results matter because the company has missed Wall Street's revenue estimates multiple times over the last two years, so another miss could hurt investor confidence. A revenue beat, by contrast, would suggest demand for its analog chips is holding up.

Analyst inference

Other analog chip makers have already reported Q3 results. Impinj grew revenue 16.7% year on year and beat estimates by 4.4%, while Monolithic Power Systems grew revenue 63.1% and topped estimates by 3.4%. These results give a hint of what to expect.

Analyst inference

What to watch

1. Watch whether onsemi's revenue grows about 10% year on year this quarter, a reversal from the 12% decrease it recorded in the same quarter last year. Confirmed
2. Watch whether onsemi meets Wall Street's revenue estimates, given it has missed them multiple times over the last two years. Confirmed
3. Watch whether onsemi's inventory levels keep improving, since last quarter showed a meaningful improvement and could signal better cash flow ahead. Analyst inference

Evidence

• stockstory.org