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

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

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 NASDAQ:AOSL traded down $2.69 during midday trading on Thursday, hitting $18.48. 1,202,882 shares of the stock traded hands, compared to its average volume of 508,071. The business’s 50 day moving average is $25.19 and its two-hundred day moving average is $30.25. Alpha and Omega Semiconductor has a one year low of $17.01 and a one year high of $54.34.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on AOSL shares. Williams Trading set a $45.00 target price on Alpha and Omega Semiconductor in a report on Thursday, August 13th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a research note on Thursday, October 15th. Needham & Company LLC lowered their price objective on Alpha and Omega Semiconductor from $50.00 to $45.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. B. Riley Financial lowered their price objective on Alpha and Omega Semiconductor from $34.00 to $25.00 and set a “neutral” rating for the company in a research report on Friday, October 23rd. Finally, Wall Street Zen lowered Alpha and Omega Semiconductor from a “hold” rating to a “sell” rating in a research note on Saturday, July 25th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target 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.