Onsemi reports better-than-expected 4Q revenue
US chip designer beat Wall Street expectations with its 4Q and full year results, but is still warning of a sluggish first quarter to come.
The firm reported 4Q 2023 revenue of USD 2.02 billion, beating an estimate of USD 2 billion. Annual sales were more or less static at USD 8,253 million. Onsemi said its performance was helped by resilient demand for its silicon carbide chips.
Onsemi supplies chips for industrial applications and is especially strong in automative. Its chips power the drive trains of electric cars and help with driver-assistance systems like cameras and sensors.
Analysts had been cautious about Onsemi thanks to weakening demand and a supply glut in the EV market. The firm's competitors such as Texas Instruments and Wolfspeed recently issued downbeat forecasts. But Onsemi confounded them, resulting in a small share price bump.
That said, Onsemi now has posted four straight quarters of declining earnings on a year-over-year basis. Sales have decreased for two quarter in a row.
"Our momentum continued this past year as we achieved record automotive revenue and 4x year-over-year growth in silicon carbide revenue," said Onsemi's Chief Executive Hassane El-Khoury in a news release. "We continue to transform the business by building resilience into our model, enabling us to navigate uncertain market conditions and deliver more predictable and sustainable results."
The highlights of the results are as follows:
- Fourth quarter revenue of USD 2,018.1 million
- Fourth quarter GAAP and non-GAAP gross margin of 46.7%
- GAAP operating margin and non-GAAP operating margin of 30.3% and 31.6%, respectively
- Full year 2023 revenue of USD 2.02 billion
- Full year 2023 record automotive revenue of USD 4.3 billion increased 29% year-over-year
