Earnings Preview: ON Semiconductor, MEMC Electronic Materials Report Wednesday

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 |  Includes: ON, SUNEQ
by: Robert Weinstein

ON Semiconductor Corp. (ONNN) is due to report earnings after the closing bell on November 2, 2011. Below you can see the results of ONNN over the last few earnings periods.

ON Semiconductor Corporation designs, manufactures, and markets a portfolio of semiconductor components that addresses the design needs of electronic systems and products worldwide. The company was founded in 1999 and is headquartered in Phoenix, Arizona.

52-Week High: $11.95
52-Week Low: $6.53
Book Value: $3.49

Float Short: 2.50%

On average, 18 analysts are expecting a drop of $-0.01 in earnings per share compared to last quarter's results of $0.25. Investors will be looking to top $0.24 per share, based on the estimated mean earnings. Analyst estimates range between $0.18 and $0.30 per share.

The P/E ratio has been recently discounted, as the current trailing twelve months (ttm) P/E ratio is 12.9, while the forward P/E ratio is now 8.5. An upside earnings report may put a lot of wind in the sails. In the last month, the stock has decreased in price -1.74%, and -0.27% from one year ago. When comparing to the S&P 500, the year-to-date difference is -24.78%.

The company has rising revenue year-over-year of $2.31 billion for 2010 vs. $1.77 billion for 2009. The bottom line has rising earnings year-over-year of $290.50 million for 2010 vs. $61.00 million for 2009. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $374.20 million for 2010 vs. $142.60 million for 2009.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for ONNN Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 878.81 M $ 905.80 M $ 26.99 M 3.07%
Mar-11 $ 830.36 M $ 870.60 M $ 40.24 M 4.85%
Dec-10 $ 576.26 M $ 579.20 M $ 2.94 M 0.51%
Sep-10 $ 599.43 M $ 600.70 M $ 1.27 M 0.21%
Jun-10 $ 573.80 M $ 583.30 M $ 9.50 M 1.66%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results ONNN Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for ONNN:

paid2trade.com short interest tool. The total short interest number of shares for ONNN Click to enlarge

The number of days to cover short interest based on average daily trading volume for ONNN.

paid2trade.com number of days to cover short interest based on average daily trading volume for ONNN Click to enlarge

MEMC Electronic Materials, Inc. (WFR) is due to report earnings after the closing bell on November 2, 2011. Below you can see the results of WFR over the last few earnings periods.

MEMC Electronic Materials, Inc. engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. The company was founded in 1984 and is based in St. Peters, Missouri.

52-Week High: $15.04
52-Week Low: $4.58
Book Value: $10.32
Float Short: 8.49%

Analysts are expecting an improvement of $0.11 in earnings per share compared to last quarter's results of $0.01. Investors will be looking to top $0.12 per share, based on the estimated mean earnings.

The P/E ratio has been discounted, as the current trailing twelve months (ttm) P/E ratio is 21, while the forward P/E ratio is now 8. It will be interesting to see if pricing is currently at a discount, or if the market has been correct to price in lower growth expectations. The stock has moved higher in price 8.69% in the last month, with a one-year change of -53.48%. When comparing to the S&P 500, the year-to-date difference is -47.12%.

The company has rising revenue year-over-year of $2.24 billion for 2010 vs. $1.16 billion for 2009. The bottom line has rising earnings year-over-year of $34.40 million for 2010 vs. $-68.30 million for 2009. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $21.10 million for 2010 vs. $-127.20 million for 2009.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for WFR Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 676.20 M $ 779.60 M $ 103.40 M 15.29%
Mar-11 $ 638.82 M $ 832.60 M $ 193.78 M 30.33%
Dec-10 $ 898.72 M $ 850.10 M $ -48.62 M -5.41%
Sep-10 $ 532.65 M $ 503.10 M $ -29.55 M -5.55%
Jun-10 $ 467.78 M $ 448.30 M $ -19.48 M -4.16%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results WFR Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for WFR:

paid2trade.com short interest tool. The total short interest number of shares for WFR Click to enlarge

The number of days to cover short interest based on average daily trading volume for WFR.

paid2trade.com number of days to cover short interest based on average daily trading volume for WFR Click to enlarge

Please feel free to share your thoughts and comments.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.