Alpha and Omega Semiconductor (NASDAQ:AOSL) Announces Quarterly Earnings Results

Alpha and Omega Semiconductor (NASDAQ:AOSL) announced its quarterly earnings data on Thursday. The semiconductor company reported ($0.07) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.07, FiscalAI reports. The firm had revenue of $177.76 million for the quarter, compared to analyst estimates 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%. Alpha and Omega Semiconductor’s quarterly revenue was down 2.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $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 Price Performance

Alpha and Omega Semiconductor stock opened at $23.61 on Friday. The stock’s fifty day moving average is $25.14 and its two-hundred day moving average is $30.26. The stock has a market cap of $715.62 million, a PE ratio of -15.33 and a beta of 2.69. Alpha and Omega Semiconductor has a 1-year low of $17.01 and a 1-year high of $54.34.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Wall Street Zen upgraded Alpha and Omega Semiconductor from a “sell” rating to a “hold” rating in a report on Saturday. Weiss Ratings restated a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a report on Thursday, October 15th. Stifel Nicolaus cut their price target on Alpha and Omega Semiconductor from $34.00 to $27.00 and set a “hold” rating on the stock in a report on Friday. Williams Trading set a $45.00 price objective on shares of Alpha and Omega Semiconductor in a report on Thursday, August 13th. Finally, Needham & Company LLC lowered their price objective on shares of Alpha and Omega Semiconductor from $45.00 to $30.00 and set a “buy” rating for the company in a report on Friday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Alpha and Omega Semiconductor has a consensus rating of “Hold” and an average target price of $36.40.

Key Alpha and Omega Semiconductor News

Here are the key news stories impacting Alpha and Omega Semiconductor this week:

• Positive Sentiment: Fiscal Q1 2027 loss was $0.07 per share, narrower than the $0.14 loss analysts expected. Revenue of $177.8 million also edged past estimates of $176.2 million. Zacks Q1 results
• Positive Sentiment: Management forecast Q2 revenue of $170 million to $190 million, with the $180 million midpoint above the $171.6 million analyst consensus. A report also cited surging AI/server revenue, supporting hopes that demand in those markets can help the business recover. Benzinga analyst coverage
• Negative Sentiment: Despite the earnings beat, revenue declined 2.6% year over year, and AOSL remained loss-making; it had earned $0.13 per share in the year-ago quarter. These trends temper the positive report. Quarterly results
• Negative Sentiment: Analysts trimmed targets after results: B. Riley cut its target to $22 and maintained a Neutral rating, while Stifel lowered its target to $27. Needham also reduced its target, to $30, but kept a Buy rating. The revisions signal caution even as views remain mixed. Analyst target changes

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.