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Benzinga
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ON Semiconductor Powers Through Expectations, But Analysts Dial Down Targets On Margin Squeeze

1. ON Semiconductor's Q1 revenue fell 22.4% to $1.45 billion, beating estimates. 2. Adjusted EPS of $0.55 topped forecasts of $0.51 from analysts. 3. Second-quarter guidance projects revenue of up to $1.45 billion. 4. Analysts see mixed outlooks, with price targets adjusted lower. 5. Gross margin pressures are likely to persist until 2025.

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FAQ

Why Neutral?

While revenue beats estimates, ongoing gross margin pressure may limit upside. Historical examples show that similar scenarios led to stagnant or decreased stock performance.

How important is it?

Quarterly results are crucial but tempered by gross margin concerns making the immediate outlook uncertain.

Why Short Term?

Immediate forecasts appear stable, but pressures likely to take longer for resolution. Market reactions often respond quickly to earnings and guidance but can adjust as the long-term implications become clear.

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