Shares of ON Semiconductor closed down more than 21% Monday after the company's third-quarter report beat expectations but offered weak guidance for the rest of the year.
ON Semiconductor said it expects to report fourth-quarter earnings between $1.13 and $1.27 per share, excluding certain items, which is short of the $1.36 analysts had anticipated.
Similarly, the company said revenue will come in between $1.95 billion and $2.05 billion, while Wall Street was expecting $2.18 billion.
Analysts at Deutsche Bank said ON Semiconductor's guidance suggests the company has "finally succumbed to macro pressures" such as softening demand for cars.
Craig-Hallum analysts said they believe weakening demand for electric vehicles will adversely affect ON Semiconductor in the near term.
Persons:
Michael Bloom
Organizations:
ON Semiconductor, Deutsche Bank, Semiconductor, UAW, Wolfe Research, CNBC