ON Semiconductor Corp. (ON)

Shares of ON Semiconductor Corporation (ON) dropped by 21.77% from $83.52 to $65.34 in the trading on Monday, October 30, 2023. The reason why ON stock down is due to the company's latest earnings report, which, while beating Q3 expectations, included a disappointing Q4 outlook.

• Q3 results: While ON's year-to-date gain was 36%, it underperformed the Zacks Computer & Technology sector's 25.2% increase. The Power Solutions Group reported strong revenues, but the Advanced Solutions and Intelligent Sensing Groups fell short, missing expectations. In the end markets, Automotive revenues surged by 32.5% YoY, beating estimates. Industrial end-market revenues increased slightly but missed consensus, while Other end-market revenues declined significantly..
• Q4 outlook: ON had been benefiting from the demand for EV power chips, but the EV market's slowdown, driven by factors like higher interest rates and market saturation, led to lower revenue projections. As ON Semiconductor generates over half of its revenue from auto-related chips, this EV market slowdown significantly impacted the company's Q4 guidance, falling below analyst estimates. The slowdown was attributed to issues with European auto customers and broader industrial sector deceleration.