ON Semiconductor’s CEO Blames ‘Outlier’ Customer for Slashed Forecast That Hit Stock
- Single auto-industry customer crimps forecast, El-Khoury says.
- He says it’s an OEM from North America, but won’t give a name.
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ON Semiconductor Corp.’s chief executive officer blamed a single North American auto-industry customer for a disappointing fourth-quarter forecast that sent the chipmaker’s stock into its worst tailspin in three-and-a-half years.
The Phoenix-based company plunged as much as 21% Monday after it projected earnings per share for the quarter of $1.13 to $1.27, lagging Wall Street’s consensus of $1.36. Revenue also will be light, based on the company’s outlook, in a range of $1.95 billion to $2.05 billion. The average estimate among analysts was $2.18 billion.