Alpha & Omega Semiconductor Beats Estimates but Has Dismal Quarter

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Alpha & Omega Semiconductor (NAS: AOSL) reported earnings Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Alpha & Omega Semiconductor beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Alpha & Omega Semiconductor reported revenue of $80.7 million. The three analysts polled by S&P Capital IQ predicted a top line of $77.3 million. Sales were 3.9% lower than the prior-year quarter's $84.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.06. The three earnings estimates compiled by S&P Capital IQ averaged $0.02 per share. GAAP EPS of $0.06 for Q2 were 85% lower than the prior-year quarter's $0.41 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.6%, 600 basis points worse than the prior-year quarter. Operating margin was 2.9%, 740 basis points worse than the prior-year quarter. Net margin was 1.8%, 1,000 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $79.5 million. On the bottom line, the average EPS estimate is -$0.09.

Next year's average estimate for revenue is $329.2 million. The average EPS estimate is $0.09.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 66 members out of 66 rating the stock outperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Alpha & Omega Semiconductor a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alpha & Omega Semiconductor is outperform, with an average price target of $10.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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