Chipmaker Onsemi has forecast second-quarter revenue above Wall Street expectations, driven by resilient demand for its chips amid a recovering automotive industry.
The company's silicon carbide chips, critical for extending the range of electric vehicles, are seeing a rebound in demand.
CEO Hassane El-Khoury said: "We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery."
Onsemi expects Q2 revenue between $1.54 billion and $1.64 billion, compared with estimates of $1.53 billion. It forecast adjusted earnings per share of 65 to 77 cents, compared with analyst expectations of 65 cents.
Revenue in the first quarter came in at $1.51 billion, beating estimates of $1.49 billion. On an adjusted basis, the company earned 64 cents per share, compared with estimates of 60 cents.
Despite the positive forecast, shares of the company fell about 5 percent in extended trading, after surging over 88 percent this year and more than 64 percent in the last month.