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ON Semiconductor stock surges after record earnings that beat expectations, upbeat outlook

Shares of ON Semiconductor Corp. shot up 8.2% in premarket trading Monday, after the chipmaker reported record adjusted profit and revenue that beat expectations and provided an upbeat outlook, citing accelerating demand in the automotive and industrial end markets. Net income was $184.1 million, or 42 cents a share, after a loss of $1.4 billion, or roughly breakeven on a per-share basis, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share increased to a record 63 cents from 12 cents, beating the FactSet consensus of 49 cents. Revenue grew 37.6% to $1.67 billion, above the FactSet consensus of $1.62 billion. For the third quarter, the company expects adjusted EPS of 68 cents to 80 cents and revenue of $1.66 billion to $1.76 billion, above the FactSet consensus for EPS of 51 cents and revenue of $1.61 billion. Gross margin is expected to improve to 38.8% to 40.9% in the third quarter from 38.3% in the second quarter. The stock has rallied 19.3% year to date through Friday, while the PHLX Semiconductor Index has run up 20.1% and the S&P 500 has advanced 17.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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