Semiconductor company Onsemi has reported a slight beat in its second-quarter revenue and profit, driven by steady demand for automotive chips. The company posted $1.74 billion in revenue, slightly above the $1.73 billion estimate, and earned 96 cents per share against a projected 92 cents. However, Onsemi's third-quarter revenue forecast of $1.70-$1.80 billion barely meets expectations and falls short of the analysts' $1.78 billion midpoint estimate. This conservative forecast hints at potential bumps in the automotive chip market, as consumer cutbacks on pricier electric cars in favor of more affordable hybrids signal shifting demands [0fbe1157].
Onsemi is also investing in artificial intelligence (AI) with new silicon carbide chips aimed at improving energy efficiency in data centers and extending electric vehicle ranges. The company's significant investments in AI could pave the way for future innovations, potentially offsetting slower automotive chip growth [0fbe1157].
Meanwhile, Zebra Technologies reported strong Q2 earnings, with revenue of $1.22 billion and adjusted earnings per share of $3.18, surpassing expectations. The company also raised its full-year 2024 sales growth forecast to 4% to 7%, up from 1% to 5%. Zebra Technologies experienced strong demand in sectors like retail, healthcare, and logistics, indicating a broader economic recovery in key sectors. CEO Bill Burns highlighted the return to growth in enterprise mobile computing and improved profitability. The company forecasts Q3 net sales growth between 25% and 28% year-over-year. Zebra Technologies' comprehensive IT solutions and products are likely to remain in high demand, as the tech sector shows promise [14c02d92].
Verisk has surpassed second-quarter profit estimates with an adjusted earnings per share (EPS) of $1.74, beating the $1.64 per share predicted by analysts. Consolidated revenue jumped 6.2% to $717 million compared to last year. The growth is driven by the rising demand for Verisk's analytics tools from property and casualty (P&C) insurers. P&C insurers are investing more in risk assessment analytics due to recent extreme weather events and growing optimism about potential rate cuts. This surge in investment could lead to growth in the sector. Verisk's strategic focus on serving US P&C insurers has paid off as the company continues to benefit from the increased need for advanced analytics in managing climate-related risks [d6c7bdbc].
