10:45 AM EDT, 10/28/2024 (MT Newswires) -- ON Semiconductor's (ON) third-quarter results fell year over year but came in ahead of Wall Street estimates while the chipmaker's earnings outlook range for the current quarter fell short of analysts' consensus at the midpoint.

Per-share adjusted earnings declined to $0.99 for the quarter ended Sept. 27 from $1.39 the year before, ahead of the Capital IQ-polled consensus of $0.97. Revenue fell to $1.76 billion from $2.18 billion last year, just ahead of the Street's view for $1.75 billion.

"Our third quarter results once again demonstrated the structural changes we have made to the business, with revenue, gross margin and earnings per share all above the midpoint of our guidance," Chief Executive Hassane El-Khoury said during an earnings call, according to a Capital IQ transcript. "With a sharp focus on execution and operational excellence, we have delivered on our commitments amid continued softness in the market."

Automotive revenue fell 18% to $951 million on an annual basis, but increased 5% from the previous quarter, Chief Financial Officer Thad Trent said on the call. "We continue to see softness in demand, but content gains driven by silicon carbide in China are driving our growth in this market," according to Trent. Industrial revenue tumbled 29% year over year to $440 million.

Business wise, power solutions revenue dropped 23% to $829.4 million, while the analog and mixed signal segment fell 16% to $653.7 million. Revenue in the intelligent sensing group division slumped 15% to $278.8 million, according to the chipmaker.

The company's gross margin was 45.4% versus 47.3% in the prior-year quarter. Total operating expenses rose to $354 million from $343.7 million last year, the company said.

For the ongoing quarter, ON Semiconductor expects adjusted EPS to be in a range of $0.92 to $1.04. The midpoint of the range is below the Street's current forecast of $1. Revenue is expected between $1.71 billion to $1.81 billion, while the market's current estimate is $1.78 billion.

"While we are cautious about the near-term macro, we remain committed to our long-term strategy," Trent told analysts. "We've remained disciplined and continue to invest for the future, both in new generations of intelligent power and sensing products and to position the company to scale efficiently for a market recovery."

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