TRKA Stock
TRKA Stock

ON Semiconductor Corp. (NASDAQ: ON), a maker of sophisticated electronics, presented a positive report for the fourth quarter of 2021. Due to the increasing demand for semiconductors, the firm achieved a record result.
ON Semiconductor’s sales increased 28.3% year over year to a new record of $6.74 billion, with operating margins hitting a new high of 45.1 percent under GAAP in the fourth quarter. Free cash flow was 25% of revenue, up 167 percent year over year. The diluted earnings per share was $0.96.
Thanks to higher sales in high-margin categories, ON Semiconductor met its financial objectives sooner than projected. We are talking about chips for automatic driver assistants (ADAS), renewable energy, industrial automation tools.
COVID-19 and supply concerns caused a product shortfall in several sections of the semiconductor industry. Furthermore, ON Semiconductor’s services for industrial chip design, smart energy management, and sensors saw a 60 percent increase in revenue.
It’s worth noting that ON Semiconductor was also hit by logistical issues since the company’s chip and electronic component plants are spread across nine countries. Despite this, ON Semiconductor continues to set new records for numerous quarters.
The company predicts sales of $1.85 – $1.95 billion, a gross margin of 45 – 47 percent, and earnings of $0.9 – $1.02 per diluted share in the first quarter of 2022, according to preliminary findings.
ON stock increased by 8.43 percent to $62.26 on Monday. The stock volume continued at 20.21 million shares, up from the average daily volume of 7.22 million shares for the previous 50 days.
Last year, ON Semiconductor, rebranded as Onsemi and stated its goal to focus on upcoming major themes including green energy and electric cars. Over the last two quarters, sales growth in these areas has underlined the appropriateness of this approach.


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