Onsemi posts quarterly revenue drop, sees dull third-quarter profit on market uncertainty
1. Onsemi forecasts weak Q3 profit after a sharp Q2 revenue decline. 2. Shares dropped over 10% due to disappointing earnings outlook.
FAQ
Why Bearish?
Historically, a negative earnings forecast often leads to further share price decline. For example, a 2018 forecast by another chipmaker resulted in a similar downward trend.
How important is it?
The lackluster profit forecast significantly influences investor sentiment and market perception of ON.
Why Short Term?
The immediate drop in shares indicates an urgent reaction, with potential recovery extending if Q3 results surprise.