May 4 (Reuters) – Onsemi forecast second-quarter revenue above Wall Street expectations on Monday, betting on resilient demand for its chips as the automotive industry recovers.
The forecast underscores the rebound in demand for Onsemi’s silicon carbide chips that are critical for extending the range of electric vehicles.
“We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery,” said CEO Hassane El-Khoury.
• Shares of the company fell around 5% in extended trading after rising over 88% this year and over 64% last month.
• Onsemi expects second-quarter revenue between $1.54 billion and $1.64 billion, compared with estimates of $1.53 billion, according to data compiled by LSEG.
• It forecast quarterly adjusted earnings per share (EPS) of between 65 cents and 77 cents, while analysts expect 65 cents.
• Revenue for the first quarter came in at $1.51 billion, beating estimates of $1.49 billion, but down 1% compared with the previous quarter.
• On an adjusted basis, the company earned 64 cents per share, compared with estimates of a profit of 60 cents per share.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sahal Muhammed)
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