(ONNN) - Earnings estimates for this year and next have soared over the past 90 days

ON Semiconductor has seen earnings estimates for this year and next soar over the past 90 days. Over that time period, this year's numbers have jumped 30.4% to 73 cents per share, while next year's estimates have increased 27.3% to 84 cents per share. The stock is cheap at 7.1x next year's estimates, well below the long-term growth rate of 20%, giving the stock a PEG ratio of 0.36. Full Analysis ON Semiconductor Corporation (ONNN) is an original equipment manufacturer (OEM) of a broad-based semiconductor analog component product portfolio. The company was spun off from Motorola in August 1999, and went public through an IPO in May 2000. Currently, the company markets over 17,000 individual devices. The company sold approximately 28.4 billion units in 2004. ON Semiconductor has a broad range of products and a diverse clientele, with 200 direct customers and 320 indirect OEM customers. The semiconductor sector trough was reached in the early part of 2005 and a new up cycle has begun. The quarter was characterized by a rebound of five of the company's six end markets. The company also recorded design wins for its filter products at four of the top five cell phone manufacturers. This strength is expected to continue into the fourth. The computing and consumer markets are likely to experience some seasonal growth, as customers build stock in preparation for the holiday season. Growth in the second half of the year will be driven by the computing and wireless segments, with contract wins in the gaming industry possibly contributing to Q4 and thereafter. ONNN potentially can grow quicker than the market due to its innovation and development of computing and gaming technology. On July 27, 2006, ON Semiconductor announced results for the second quarter of fiscal year 2006 ending June 2006. The top and bottom lines could be characterized as being ahead of consensus estimates. Revenue for the second quarter was $375.3 million, up 12% sequentially, and up 24% year-over-year. Revenue was ahead of management's guidance of 354.0 million by 6%. Earnings estimates for this year and next have soared over the past 90 days. Over that time period, this year's numbers have jumped 30.4% to 73 cents per share, while next year's estimates have increased 27.3% to 84 cents per share. The stock is cheap at 7.1x next year's estimates, well below the long-term growth rate of 20%, giving the stock a PEG ratio of 0.36. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home