Feb 9 (Reuters) – Chipmaker Onsemi missed Wall Street estimates for fourth-quarter revenue on Monday, with its business segments declining as much as 17%, hurt by a persistent inventory glut.
Shares of the Phoenix, Arizona-based company fell nearly 6% in extended trading.
Onsemi has been grappling with an inventory glut as its customers work through excess chip stockpiles ordered during the supply chain crunch.
Analysts expect Onsemi’s silicon carbide chips business to continue facing challenges, amid increased competition from Chinese companies and as electric vehicle sales have grown slower than expected.
The recent cuts to clean energy tax credits in the U.S. could also slow down customer adoption in the near term.
Onsemi reported revenue of $1.53 billion, down 11%, for the quarter ended December 31, missing estimates of $1.54 billion according to data compiled by LSEG.
Power solutions group, which provides high-performance power semiconductors and is Onsemi’s largest revenue contributor, posted revenue of $724.2 million in the fourth quarter, down 11%from a year earlier.
The intelligent sensing group declined 17% to $249.6 million in the quarter, while Onsemi’s analog and mixed-signal segment reported a 9% fall in revenue to $556.3 million.
On an adjusted basis, the company earned 64 cents per share, compared with estimates of 62 cents.
Onsemi expects first-quarter revenue between $1.44 billion and $1.54 billion, the midpoint of which comes below analysts’ estimates of $1.51 billion.
(Reporting by Juby Babu in Mexico City; Editing by Krishna Chandra Eluri)
Comments