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

Alpha and Omega Semiconductor (NASDAQ:AOSL) released its quarterly earnings data on Thursday. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 last year, the firm posted $0.09 EPS. The firm’s revenue for the quarter 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

Shares of NASDAQ AOSL traded up $0.24 during trading hours on Thursday, hitting $22.51. 597,025 shares of the stock were exchanged, compared to its average volume of 351,216. Alpha and Omega Semiconductor has a one year low of $15.90 and a one year high of $46.65. The company’s 50 day moving average is $21.39 and its 200 day moving average is $24.82. The firm has a market capitalization of $676.65 million, a P/E ratio of -6.93 and a beta of 2.01.

Insiders Place Their Bets

In other news, EVP Bing Xue sold 1,845 shares of the firm’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $20.56, for a total value of $37,933.20. Following the sale, the executive vice president directly owned 127,863 shares of the company’s stock, valued at approximately $2,628,863.28. This trade represents a 1.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 16.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Alpha and Omega Semiconductor

Hedge funds have recently added to or reduced their stakes in the business. Millennium Management LLC lifted its holdings in shares of Alpha and Omega Semiconductor by 57.5% during the third quarter. Millennium Management LLC now owns 637,876 shares of the semiconductor company’s stock worth $17,835,000 after buying an additional 232,817 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Alpha and Omega Semiconductor by 12.7% during the second quarter. The Manufacturers Life Insurance Company now owns 1,411,400 shares of the semiconductor company’s stock worth $36,217,000 after acquiring an additional 158,869 shares during the period. Wellington Management Group LLP raised its stake in Alpha and Omega Semiconductor by 15.0% during the 3rd quarter. Wellington Management Group LLP now owns 864,965 shares of the semiconductor company’s stock valued at $24,184,000 after purchasing an additional 113,077 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in Alpha and Omega Semiconductor by 551.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 92,121 shares of the semiconductor company’s stock valued at $2,364,000 after purchasing an additional 77,984 shares during the period. Finally, Bridgeway Capital Management LLC grew its position in Alpha and Omega Semiconductor by 189.8% in the 3rd quarter. Bridgeway Capital Management LLC now owns 72,983 shares of the semiconductor company’s stock worth $2,041,000 after purchasing an additional 47,798 shares during the last quarter. Institutional investors own 78.97% of the company’s stock.

Analyst Ratings Changes

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

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.