Alpha and Omega Semiconductor (NASDAQ:AOSL) Posts Earnings Results, Beats Expectations By $0.07 EPS

Alpha and Omega Semiconductor (NASDAQ:AOSL) announced its quarterly earnings results on Thursday. The semiconductor company reported ($0.07) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.07, FiscalAI reports. Alpha and Omega Semiconductor had a negative net margin of 6.23% and a negative return on equity of 4.88%. The company had revenue of $177.76 million during the quarter, compared to the consensus estimate of $176.20 million. During the same quarter last year, the firm earned $0.13 earnings per share. The firm’s quarterly revenue was down 2.6% compared to the same quarter last year.

Here are the key takeaways from Alpha and Omega Semiconductor’s conference call:

• AI and server demand surged: Advanced Computing revenue grew more than 50% sequentially and 80% year over year, with AI and server applications now about 20% of total revenue. Management said the business is broadening across customers and platforms, though many opportunities are still relatively new.
• Margins improved with a richer product mix: September-quarter non-GAAP gross margin rose 150 basis points sequentially to 25.2%, while the non-GAAP loss narrowed to $0.07 per share from $0.13 in the prior quarter. Management said improved mix was the main driver, with pricing also turning slightly favorable.
• Traditional PC and consumer markets remain weak: PC-related revenue fell about 30% sequentially, and management expects elevated memory costs and component shortages to persist, with no near-term PC recovery anticipated. Consumer revenue declined 22.9% sequentially, led by weakness in appliances, gaming, and wearables.
• Management expects counter-seasonal growth in the December quarter: Revenue is forecast at approximately $180 million, plus or minus $10 million, with non-GAAP gross margin of 25.7%, plus or minus 1%. Growth in communications and power supply and industrial is expected to help offset a mid-to-high-single-digit sequential decline in computing revenue.

Alpha and Omega Semiconductor Stock Performance

Shares of AOSL stock traded down $2.69 during trading hours on Thursday, reaching $18.48. The company had a trading volume of 1,202,882 shares, compared to its average volume of 508,071. The business has a fifty day moving average price of $25.19 and a 200-day moving average price of $30.25. Alpha and Omega Semiconductor has a one year low of $17.01 and a one year high of $54.34.

Wall Street Analysts Forecast Growth

AOSL has been the topic of several recent analyst reports. B. Riley Financial cut their target price on Alpha and Omega Semiconductor from $34.00 to $25.00 and set a “neutral” rating on the stock in a research note on Friday, October 23rd. Williams Trading set a $45.00 price target on Alpha and Omega Semiconductor in a research note on Thursday, August 13th. Needham & Company LLC decreased their price target on Alpha and Omega Semiconductor from $50.00 to $45.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a report on Thursday, October 15th. Finally, Wall Street Zen cut Alpha and Omega Semiconductor from a “hold” rating to a “sell” rating in a research report on Saturday, July 25th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $38.67.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a semiconductor company that designs, develops and supplies power management products. Its portfolio includes power MOSFETs, power integrated circuits, transient voltage suppressors, insulated-gate bipolar transistors and other power semiconductor devices used to manage, convert and protect electrical power.

The company’s products are used in applications including personal computers, servers, telecommunications equipment, consumer electronics, industrial systems, automotive equipment and power supplies.