ON Semiconductor Corporation (ON.US) failed to meet its fourth quarter expectations, and may continue to face industry challenges in the first quarter.

Before the U.S. stock market opened on Monday, ON Semiconductor Corporation (ON.US) announced its performance for the fourth quarter of 2024. The financial report showed that ON Semiconductor Corporation's revenue in the fourth quarter was $1.73 billion, a decrease of 14.6% year-on-year, which was $30 million lower than market expectations; earnings per share were $0.95, below market expectations of $0.97. The shortfall in revenue and earnings can be attributed to continued market weakness and a decline in demand for key business segments, especially PSG and AMG, which experienced significant year-on-year declines of 16% and 18% respectively. ON Semiconductor Corporation's gross margin for the fourth quarter was 45.2%, a decrease from 46.7% the previous year, primarily due to increased cost pressures and a competitive pricing environment. Revenue and operating profit margins saw a slight decrease, consistent with the overall industry slowdown and increasing economic uncertainty trend. The full year 2024 free cash flow for ON Semiconductor Corporation was $1.2 billion, a threefold increase year-on-year. ON Semiconductor Corporation CEO Hassane El-Khoury stated: "As we continue to navigate through market challenges, our actions over the past four years have proven that we are a structurally different company, capable of managing long-term fluctuations. While 2025 remains uncertain, we remain committed to our long-term strategy. We will maintain financial discipline, streamline operations, and continue to deliver high-value, differentiated intelligent power and sensing solutions to make the company stronger." Performance Guidance ON Semiconductor Corporation expects revenue for the first quarter of 2025 to be between $1.35 billion and $1.45 billion, while analysts generally expected $1.69 billion; earnings per share for the first quarter are expected to be $0.45-0.55, compared to analysts' general expectation of $0.89. This guidance reflects a conservative outlook as the company continues to address market fluctuations and external pressures.