ON Semiconductor (ON.US) faced a double loss in Q4, and may continue to struggle in Q1 amidst the industry's winter.

On Monday before the US market opened, ON Semiconductor (ON.US) reported its fourth-quarter 2024 earnings. The results showed that ON Semiconductor's fourth-quarter revenue was $1.73 billion, down 14.6% year-on-year, and $30 million lower than market expectations; and its EPS was $0.95, lower than the market's expectation of $0.97.

The shortfall in revenue and earnings can be attributed to the ongoing market downturn and the decline in demand in its major business segments, especially in the Power Solutions Group (PSG) and Automotive Solutions Group (AMG), which saw larger year-on-year declines of 16% and 18%, respectively.

ON Semiconductor's fourth-quarter gross margin was 45.2%, down from 46.7% in the previous year, mainly due to increased cost pressures and a competitive pricing environment.

The slight decline in revenue and operating margin is consistent with the trend of overall industry growth slowdown and increased economic uncertainty.

Its full-year 2024 free cash flow was $1.2 billion, up three times year-on-year.

ON Semiconductor CEO Hassane El-Khoury said: "As we continue to navigate the market downturn, our actions over the past four years have proven that we are a structurally different company capable of navigating long-term volatility. While 2025 remains uncertain, we remain committed to our long-term strategy. We will maintain financial discipline, streamline operations, and continue to provide high-value, differentiated intelligent power and sensing solutions to make the company stronger."

Guidance

ON Semiconductor expects its first-quarter 2025 revenue to be between $1.35 billion and $1.45 billion, while analysts' consensus is $1.69 billion; and expects its first-quarter EPS to be between $0.45 and $0.55, while analysts' consensus is $0.89.

The guidance reflects a conservative outlook as the company continues to navigate market volatility and external pressures.