onsemi’s Q3 Earnings Call: Our Top 5 Analyst Questions

• Revenue: $1.55 cardinal vs expert estimates of $1.52 cardinal (12% year-on-year decline, 2.2% beat)

• Adjusted EPS: $0.63 vs expert estimates of $0.59 (6.6% beat)

• Adjusted EBITDA: $444.3 cardinal vs expert estimates of $432.9 cardinal (28.6% margin, 2.6% beat)

• Revenue Guidance for Q4 CY2025 is $1.53 cardinal astatine the midpoint, astir successful enactment with what analysts were expecting

• Adjusted EPS guidance for Q4 CY2025 is $0.62 astatine the midpoint, astir successful enactment with what analysts were expecting

• Operating Margin: 17%, down from 25.3% successful the aforesaid 4th past year

• Inventory Days Outstanding: 193, down from 207 successful the erstwhile quarter

• Market Capitalization: $19.25 billion

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

• Ross Seymore (Deutsche Bank) questioned the sustainability of automotive maturation and whether caller trends awesome a existent recovery. CEO Hassane El-Khoury replied that stabilization is evident, but restocking cycles person not yet begun, and quarter-to-quarter changes are mostly seasonal.

• Vivek Arya (Bank of America) asked astir utilization rates and imaginable borderline impacts. CFO Thad Trent explained that utilization is expected to normalize successful coming quarters, with gross margins pursuing seasonal patterns and benefiting from higher utilization implicit time.

• Quinn Bolton (Needham & Company) probed the integration of Vcore Power and semipermanent benefits. El-Khoury described the acquisition arsenic providing some short-term marketplace entree and semipermanent architectural advantages erstwhile integrated into the Treo platform.

• Christopher Danely (Citi) inquired astir the interaction of manufacture events astatine competitors similar Nexperia. El-Khoury stated onsemi continues to enactment shared customers but has not made portfolio changes successful response, focusing alternatively connected its wide merchandise range.

• Gary Mobley (Loop Capital) asked astir the ongoing exit from noncore businesses and its gross impact. Trent confirmed the strategy is proceeding arsenic planned, with nary changes to the antecedently communicated headwind projections.