$ON Semiconductor (ON.US)$ stock reported a fiscal second-quarter 2024 revenue decline of 17.2% year-on-year to $1.74 billion, beating the analyst consensus estimate of $1.73 billion. The adjusted EPS of $0.96 beat the analyst consensus estimate of $0.92.

As of June 28, 2024, the frim reported bookings of approximately $14.7 billion. The firm said in filings it expects to recognize approximately 30% of this amount as revenue during the next twelve months- about $4.2B.

Revenue from Power Solutions Group (PSG) declined 15% year over year to $835.2 million, Analog and Mixed-Signal Group (AMG) decreased 18% year over year to $647.8 million, and Intelligent Sensing Group (ISG) fell 22% year over year to $252.2 million.

The adjusted gross margin declined by 210 bps to 45.3%, and the adjusted operating margin decreased by 530 bps to 27.5%, implying semiconductor industry pricing pressures.

ON Semiconductor generated $207.7 million in free cash flow and held $2.68 billion in cash and equivalents as of June 28, 2024.

CEO Hassane El-Khoury said, "As reflected by our recent supply agreement with Volkswagen Group, we also continue to strengthen our silicon carbide leadership position in automotive as we ramp production with leading global OEMs in Europe, North America and China."

ON Semiconductor expects third-quarter adjusted revenue of $1.70 billion – $1.80 billion, versus the consensus of $1.73 billion.

The company sees adjusted EPS of $0.91 – $1.03 versus the consensus of $0.92.

ON Semiconductor stock lost 35% in the last 12 months. Earlier in July, Citigroup and Morgan Stanley downgraded rating and price targets on the stock. The reratings coincided with the US intensifying the advanced semiconductor embargo on China, affecting the chip stocks.