Onsemi Shares Plunge After Missing Q4 Estimates and Issuing Weak Guidance

The semiconductor company cites declining automotive demand and economic uncertainty for its underperformance and cautious outlook.

Onsemi reported a 15% year-over-year revenue decline in Q4, falling short of analyst expectations with $1.72 billion in revenue versus the $1.76 billion estimate.
The company posted adjusted earnings per share of $0.95, missing the consensus estimate of $0.97.
Weakened global automotive demand and slower-than-expected electric vehicle adoption were key factors impacting performance, with silicon carbide chip orders particularly affected.
Onsemi forecasts Q1 2025 revenue between $1.35 billion and $1.45 billion, significantly below Wall Street's $1.69 billion estimate, and adjusted EPS of $0.45 to $0.55.
Management plans structural changes, including cost-cutting measures and site closures, to improve margins and position the company for long-term growth in electrification and renewable energy markets.