ON Semiconductor Q3 Profit Down, Misses View

(RTTNews) - ON Semiconductor Corp. (ONNN), Thursday reported a drop in profit for the third quarter, hurt largely by special charges that offset revenue growth. Earnings for the quarter fell short of analysts estimates, as did revenues.

The Phoenix, Arizona-based company's third-quarter net income dropped to $41.6 million or $0.09 per share from $51.8 million or $0.11 per share last year.

The company said its third-quarter net income was negatively impacted by about $51.6 million of special items.

Adjusted earnings for the quarter rose to $93.2 million or $0.21 per share from $75.4 million or $0.17 per share last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

The semiconductor components maker said revenues for the quarter rose to $833.5 million from $715.4 million a year ago. Analysts had a consensus revenue estimate of $844.4 million last year.

Gross margins for the period improved to 34.1 percent from 34.8 percent last year.

"Our third quarter results and outlook for the fourth quarter were impacted by a slowdown in orders from certain geographies and end-markets," said Chief Executive Keith Jackson. "However, during the past few weeks, we have noticed a recovery in orders for shipment in first half of 2015."