ON Semiconductor Corporation stock research
FY2024 Q2
ON Semiconductor (ON) Gross Margin — Quarter Ended Jun 28, 2024
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased. As a result, gross profit fell and gross margin weakened.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased. As a result, gross profit fell and gross margin weakened.
- The gross margin weakened sequentially and year-over-year, with the decline in revenue outpacing the reduction in cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, all metrics were lower and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.2%
Gross profit
$784.0M
Revenue
$1.7B
Cost of revenue
$951.2M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 29, 2023 | $2.2B | $1.0B | $1.2B | 47.3% |
| Dec 31, 2023 | $2.0B | $941.9M | $1.1B | 46.7% |
| Mar 29, 2024 | $1.9B | $853.6M | $1.0B | 45.8% |
| Jun 28, 2024 | $1.7B | $784.0M | $951.2M | 45.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
-0.6 pts
Year-over-year change
Jun 30, 2023
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, with the decline in revenue outpacing the reduction in cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, all metrics were lower and gross margin also weakened.
Monitor the trajectory of revenue relative to cost of revenue, as the gross margin has declined in both comparisons.