ON Semiconductor Corp (NASDAQ: ON) reported stronger-than-expected earnings for its fourth quarter on Friday.
Total revenue was up approximately 9% from the same quarter last year. Fourth quarter revenue was down approximately 3% as compared to revenue in the third quarter of 2018.
Q4 revenue came in at $1,503.1 million. GAAP earnings per share were $0.39 and non-GAAP earnings per share of $0.53. Net income proved $165.6 million, compared to $529.9 million in the prior-year quarter.
CEO Keith Jackson said, "We once again delivered strong performance in the fourth quarter despite slowdown in macroeconomic conditions. Key secular trends driving growth in our content in automotive, industrial, and cloud-power end-markets remain intact, and we remain upbeat about our medium to long term outlook.
"Our design-win pipeline in our strategic markets is growing at a strong pace, our customer engagements are strengthening, and our competitive position is improving significantly.
"Despite confidence in our medium to long term outlook, we remain cognizant of slowing macroeconomic conditions, and we are managing our business prudently to adjust to changing demand environment."
Based on product booking trends, backlog levels, and estimated turns levels, the Company anticipates that total revenue in first quarter of 2019 will be approximately $1,365 to $1,415 million. First-quarter 2019 gross margin outlook includes negative impact of 50 basis points from manufacturing services provided by ON Semiconductor Aizu Co., Ltd.
The outlook for the first quarter of 2019 includes anticipated stock-based compensation expense of approximately $19 million to $21 million. Net cash paid for income taxes is expected to be $16 million to $20 million.
Shares faded 44 cents, or 2.1%, to $20.36
