Alpha and Omega Semiconductor (NASDAQ:AOSL) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Alpha and Omega Semiconductor (NASDAQ:AOSL) released its quarterly earnings results on Thursday. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.03), FiscalAI reports. Alpha and Omega Semiconductor had a negative net margin of 13.86% and a negative return on equity of 2.78%. During the same period in the prior year, the business posted $0.09 EPS. The firm’s revenue was down 6.3% on a year-over-year basis.

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

• Total December‑quarter revenue was $162.3 million, down 6.3% YoY and 11.1% sequentially; non‑GAAP gross margin was 22.2% and non‑GAAP EPS was a $0.16 loss.
• AOS reports traction in advanced computing and AI with design wins for high‑performance medium‑voltage MOSFETs (hot‑swap and intermediate‑bus converters) and expanding BOM content with a Tier‑1 U.S. smartphone customer.
• Management monetized ~20% of its Chongqing JV for an aggregate $150M (installment receipts underway) while retaining an 18.9% stake and repurchased ~$13.9M of shares, bolstering financial flexibility.
• Company is accelerating targeted R&D (planning ~25% YoY increase for calendar 2026) and modestly higher CapEx to support higher‑value product programs, which will pressure near‑term OpEx before expected future benefits.
• March guidance: revenue ~$160M ± $10M and non‑GAAP gross margin ~21% ± 1%; management calls March a near‑term trough with growth expected to resume in June and accelerate into 2027.

Alpha and Omega Semiconductor Price Performance

Alpha and Omega Semiconductor stock traded up $0.24 during midday trading on Thursday, reaching $22.51. 597,025 shares of the stock traded hands, compared to its average volume of 331,370. The stock’s fifty day moving average is $21.39 and its 200-day moving average is $24.82. Alpha and Omega Semiconductor has a 12 month low of $15.90 and a 12 month high of $46.65.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on AOSL shares. Benchmark reduced their target price on shares of Alpha and Omega Semiconductor from $32.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a research note on Wednesday, January 21st. Wall Street Zen upgraded shares of Alpha and Omega Semiconductor from a “sell” rating to a “hold” rating in a research report on Saturday, December 6th. B. Riley reiterated a “neutral” rating and issued a $24.00 price target (down previously from $40.00) on shares of Alpha and Omega Semiconductor in a research note on Thursday, November 6th. Finally, Stifel Nicolaus cut their target price on Alpha and Omega Semiconductor from $29.00 to $24.00 and set a “hold” rating for the company in a research report on Thursday, November 6th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Alpha and Omega Semiconductor presently has a consensus rating of “Hold” and a consensus price target of $24.33.

Insider Transactions at Alpha and Omega Semiconductor

In other news, EVP Bing Xue sold 1,845 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $20.56, for a total transaction of $37,933.20. Following the sale, the executive vice president directly owned 127,863 shares of the company’s stock, valued at $2,628,863.28. This represents a 1.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 16.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

A number of hedge funds have recently bought and sold shares of AOSL. The Manufacturers Life Insurance Company grew its stake in shares of Alpha and Omega Semiconductor by 12.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,411,400 shares of the semiconductor company’s stock worth $36,217,000 after buying an additional 158,869 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Alpha and Omega Semiconductor by 15.0% in the 3rd quarter. Wellington Management Group LLP now owns 864,965 shares of the semiconductor company’s stock valued at $24,184,000 after acquiring an additional 113,077 shares during the last quarter. Millennium Management LLC grew its position in Alpha and Omega Semiconductor by 57.5% in the third quarter. Millennium Management LLC now owns 637,876 shares of the semiconductor company’s stock worth $17,835,000 after acquiring an additional 232,817 shares in the last quarter. Oberweis Asset Management Inc. increased its stake in Alpha and Omega Semiconductor by 11.0% during the third quarter. Oberweis Asset Management Inc. now owns 271,100 shares of the semiconductor company’s stock worth $7,580,000 after acquiring an additional 26,800 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in Alpha and Omega Semiconductor by 72.4% during the third quarter. JPMorgan Chase & Co. now owns 158,844 shares of the semiconductor company’s stock worth $4,441,000 after acquiring an additional 66,723 shares during the last quarter. Hedge funds and other institutional investors own 78.97% of the company’s stock.

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.