ON Semiconductor Corp shares are trading higher After the company reported upbeat Q2 results and Q3 guidance

ON Semiconductor Corp (NASDAQ:ON) stock gained Monday after it reported flat second-quarter FY23 revenue growth year-on-year at $2.09 billion, beating the consensus of $2.02 billion. Non-GAAP EPS of $1.33 beat the consensus of $1.21.

Revenue from Power Solutions Group (PSG) grew 6% year-over-year to $1.12 billion, Advanced Solutions Group (ASG) decreased 9% year-over-year to $649.5 million, and Intelligent Sensing Group (ISG) rose 4% year-over-year to $325.1 million.

The non-GAAP gross margin declined by 230 bps to 47.4%, and the non-GAAP operating margin decreased by 170 bps to 32.8%.

ON Semiconductor used $(39.8) million in free cash flow and held $2.62 billion in cash and equivalents.

"Onsemi delivered another excellent quarter, ahead of guidance on revenue and earnings per share, driven by growth in automotive and industrial," said Hassane El-Khoury, president and chief executive officer.

"Our brownfield capacity expansion is creating an opportunity for onsemi to gain share in silicon carbide by capitalizing on the rapidly accelerating demand for electrification and renewable energy."

Outlook: ON Semiconductor expects third-quarter adjusted revenue of $2.095 billion - $2.195 billion, above the consensus of $2.07 billion.

The company sees non-GAAP EPS of $1.27 - $1.41 above the consensus of $1.21.