Alpha and Omega Semiconductor (NASDAQ:AOSL) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Alpha and Omega Semiconductor beat quarterly expectations: The company reported an adjusted loss of $0.13 per share, $0.11 better than analysts’ expected loss of $0.24, while revenue of $170.37 million exceeded estimates of $168 million.
• Profitability remained weak despite the earnings beat: Alpha and Omega posted a negative net margin of 15.51% and negative return on equity of 4.30%. Shares rose $1.44 to $36.28, below the analyst consensus price target of $40.
• Analyst sentiment is mixed: The stock has a consensus “Hold” rating, with three Buy, three Hold and one Sell recommendation. Institutional investors own nearly 79% of the company, while an executive recently sold shares under a pre-arranged Rule 10b5-1 trading plan.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) announced its quarterly earnings data on Wednesday. The semiconductor company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.24) by $0.11, FiscalAI reports. The business had revenue of $170.37 million during the quarter, compared to analysts' expectations of $168.00 million. Alpha and Omega Semiconductor had a negative return on equity of 4.30% and a negative net margin of 15.51%.

Alpha and Omega Semiconductor Stock Performance

NASDAQ AOSL traded up $1.44 on Wednesday, reaching $36.28. The company had a trading volume of 879,372 shares, compared to its average volume of 659,200. The company's fifty day moving average is $38.62 and its 200-day moving average is $32.41. Alpha and Omega Semiconductor has a 1-year low of $17.01 and a 1-year high of $54.34. The firm has a market capitalization of $1.09 billion, a price-to-earnings ratio of -10.19 and a beta of 2.60.

Insider Activity at Alpha and Omega Semiconductor

In other news, EVP Bing Xue sold 4,916 shares of the company's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $47.09, for a total transaction of $231,494.44. Following the completion of the transaction, the executive vice president directly owned 123,660 shares of the company's stock, valued at $5,823,149.40. This represents a 3.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. acquired a new position in Alpha and Omega Semiconductor during the third quarter worth $62,000. Strs Ohio acquired a new stake in Alpha and Omega Semiconductor in the first quarter valued at $70,000. iSAM Funds UK Ltd acquired a new stake in Alpha and Omega Semiconductor in the third quarter valued at $91,000. Tower Research Capital LLC TRC grew its position in shares of Alpha and Omega Semiconductor by 574.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,957 shares of the semiconductor company's stock valued at $127,000 after acquiring an additional 4,222 shares during the period. Finally, BNP Paribas Financial Markets grew its position in shares of Alpha and Omega Semiconductor by 146.1% in the 3rd quarter. BNP Paribas Financial Markets now owns 6,123 shares of the semiconductor company's stock valued at $171,000 after acquiring an additional 3,635 shares during the period. Institutional investors own 78.97% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Wall Street Zen lowered Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Lake Street Capital began coverage on Alpha and Omega Semiconductor in a research report on Thursday, June 25th. They set a "buy" rating and a $58.00 target price for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Friday, July 17th. Needham & Company LLC assumed coverage on shares of Alpha and Omega Semiconductor in a research report on Friday, May 1st. They issued a "buy" rating and a $50.00 price target on the stock. Finally, Stifel Nicolaus lifted their price objective on shares of Alpha and Omega Semiconductor from $36.00 to $42.00 and gave the stock a "hold" rating in a research note on Wednesday, June 24th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $40.00.

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.

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