Alpha and Omega Semiconductor Reports Q2 Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy AOSL?
Source: seekingalpha
- Earnings Report: Alpha and Omega Semiconductor's FQ2 non-GAAP EPS of -$0.16 missed expectations by $0.08, indicating challenges in profitability and resulting in a 7.4% drop in share price.
- Revenue Performance: The company reported revenue of $162.3 million, a 6.3% year-over-year decline, although it beat expectations by $1.63 million, reflecting weak market demand that could impact future investment decisions.
- Future Outlook: For fiscal Q3 2026, revenue is expected to be approximately $160 million, with a range of ±$10 million, and a GAAP gross margin forecast of 20.2%, suggesting that cost control efforts may affect profitability.
- Operating Expenses: GAAP operating expenses are projected to be around $52 million, with non-GAAP expenses at $45 million, primarily due to increased R&D spending, which may impact the company's short-term financial performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AOSL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AOSL
Wall Street analysts forecast AOSL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AOSL is 24.33 USD with a low forecast of 24.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 22.510
Low
24.00
Averages
24.33
High
25.00
Current: 22.510
Low
24.00
Averages
24.33
High
25.00
About AOSL
Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of a broad portfolio of power semiconductors. Its portfolio of products targets high-volume applications, including personal computers, graphic cards, game consoles, flat panel televisions (TV), home appliances, power tools, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. Its product portfolio consists of two categories: power discrete and power ICs that serve the large and diverse analog market for power semiconductors. Its power discrete products consist of low, medium and high voltage power MOSFETs. Its power ICs deliver power and control and regulate the power management variables, such as the flow of current and level of voltage. Its portfolio of power semiconductors includes approximately 2,700 products. It conducts its operations in the United States of America, Hong Kong, China, and South Korea.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Molina Healthcare Reports Larger Than Expected Quarterly Loss
- Quarterly Loss Report: Molina Healthcare reported a quarterly loss of $2.75 per share, significantly missing the Street estimate of a $0.33 profit, indicating substantial challenges in profitability that could undermine investor confidence.
- Revenue Performance: Despite the severe loss, Molina's quarterly revenue reached $11.38 billion, surpassing the consensus estimate of $10.86 billion, suggesting that the company still possesses some resilience in revenue growth, potentially laying a foundation for future recovery.
- Stock Price Reaction: Molina Healthcare's shares dipped 29.4% to $124.90 in pre-market trading, reflecting a negative market reaction to its earnings report, which may lead investors to reassess the stock's value.
- Market Trends: U.S. stock futures were generally higher, with Dow futures gaining around 100 points, indicating a prevailing optimism about the overall economic outlook, even as individual stocks like Molina performed poorly.
See More
Roblox Reports Quarterly Earnings Exceeding Expectations
- Quarterly Losses in Line: Roblox reported a quarterly loss of $0.45 per share, aligning with analyst expectations, which indicates stability in financial management despite ongoing challenges.
- Revenue Beats Expectations: The quarterly revenue reached $2.22 billion, surpassing the analyst consensus estimate of $2.05 billion and significantly up from $1.36 billion in the same period last year, showcasing the company's success in user growth and monetization.
- Stock Price Surge: Roblox shares jumped 14.3% to $69.24 in pre-market trading, reflecting a positive market reaction to the earnings report, which may attract more investor interest.
- Market Dynamics Impact: The release of this earnings report could influence the stock performance of other related companies, particularly in the gaming and tech sectors, demonstrating market confidence in the industry.
See More
Alpha and Omega (AOSL) Q2 2026 Earnings Transcript
See More
AOSL Q2 2026 Earnings Call Insights
- Financial Performance Overview: AOSL reported total revenue of $162.3 million for Q2, down 6.3% year-over-year and 11.1% sequentially, with a non-GAAP gross margin of 22.2% and a non-GAAP loss per share of $0.16, indicating challenges amid seasonal market fluctuations and inventory digestion.
- Share Repurchase Signal: The company executed a $13.9 million share repurchase during the quarter as part of a $30 million program, signaling management's confidence in the strategic direction and aiming to enhance shareholder value.
- Increased R&D Investment: Management plans to increase R&D spending by 25% in 2026, focusing on high-performance markets such as AI and medium-voltage MOSFETs, aiming for higher BOM content and sustainable margins in the future.
- Future Outlook: Management anticipates that the March quarter will mark a low point for revenue and margins, with a return to growth expected in the June quarter and a more significant acceleration in 2027, reflecting optimism about new platforms and programs.
See More
Amazon's Earnings Miss Expectations, Shares Drop
- Amazon Earnings Miss: Amazon reported fourth-quarter earnings of $1.95 per share, falling short of the $1.97 consensus estimate, resulting in a 9% drop in shares, highlighting pressures in the competitive e-commerce landscape.
- Reddit Stock Surge: Reddit's stock rose 4% after its fourth-quarter earnings exceeded expectations, coupled with a $1 billion share buyback program, which is expected to boost investor confidence and enhance future shareholder returns.
- Molina Healthcare Loss: Molina Healthcare posted an adjusted loss of $2.75 per share, leading to a 33% decline in shares, primarily due to pressures from Medicaid premium adjustments and Medicare costs, with full-year revenue projected at $44.5 billion, below the $46.55 billion forecasted by analysts.
- Envista Strong Performance: Envista reported fourth-quarter earnings of 38 cents per share and revenue of $750.6 million, resulting in a 14% increase in shares, with expectations of 2% to 4% core sales growth in 2026, indicating robust performance in the dental products market.
See More
Alpha and Omega Semiconductor Reports Q2 Earnings Miss
- Earnings Report: Alpha and Omega Semiconductor's FQ2 non-GAAP EPS of -$0.16 missed expectations by $0.08, indicating challenges in profitability and resulting in a 7.4% drop in share price.
- Revenue Performance: The company reported revenue of $162.3 million, a 6.3% year-over-year decline, although it beat expectations by $1.63 million, reflecting weak market demand that could impact future investment decisions.
- Future Outlook: For fiscal Q3 2026, revenue is expected to be approximately $160 million, with a range of ±$10 million, and a GAAP gross margin forecast of 20.2%, suggesting that cost control efforts may affect profitability.
- Operating Expenses: GAAP operating expenses are projected to be around $52 million, with non-GAAP expenses at $45 million, primarily due to increased R&D spending, which may impact the company's short-term financial performance.
See More
Molina Healthcare Reports Larger Than Expected Quarterly Loss
- Quarterly Loss Report: Molina Healthcare reported a quarterly loss of $2.75 per share, significantly missing the Street estimate of a $0.33 profit, indicating substantial challenges in profitability that could undermine investor confidence.
- Revenue Performance: Despite the severe loss, Molina's quarterly revenue reached $11.38 billion, surpassing the consensus estimate of $10.86 billion, suggesting that the company still possesses some resilience in revenue growth, potentially laying a foundation for future recovery.
- Stock Price Reaction: Molina Healthcare's shares dipped 29.4% to $124.90 in pre-market trading, reflecting a negative market reaction to its earnings report, which may lead investors to reassess the stock's value.
- Market Trends: U.S. stock futures were generally higher, with Dow futures gaining around 100 points, indicating a prevailing optimism about the overall economic outlook, even as individual stocks like Molina performed poorly.
See More
Roblox Reports Quarterly Earnings Exceeding Expectations
- Quarterly Losses in Line: Roblox reported a quarterly loss of $0.45 per share, aligning with analyst expectations, which indicates stability in financial management despite ongoing challenges.
- Revenue Beats Expectations: The quarterly revenue reached $2.22 billion, surpassing the analyst consensus estimate of $2.05 billion and significantly up from $1.36 billion in the same period last year, showcasing the company's success in user growth and monetization.
- Stock Price Surge: Roblox shares jumped 14.3% to $69.24 in pre-market trading, reflecting a positive market reaction to the earnings report, which may attract more investor interest.
- Market Dynamics Impact: The release of this earnings report could influence the stock performance of other related companies, particularly in the gaming and tech sectors, demonstrating market confidence in the industry.
See More
Alpha and Omega (AOSL) Q2 2026 Earnings Transcript
See More
AOSL Q2 2026 Earnings Call Insights
- Financial Performance Overview: AOSL reported total revenue of $162.3 million for Q2, down 6.3% year-over-year and 11.1% sequentially, with a non-GAAP gross margin of 22.2% and a non-GAAP loss per share of $0.16, indicating challenges amid seasonal market fluctuations and inventory digestion.
- Share Repurchase Signal: The company executed a $13.9 million share repurchase during the quarter as part of a $30 million program, signaling management's confidence in the strategic direction and aiming to enhance shareholder value.
- Increased R&D Investment: Management plans to increase R&D spending by 25% in 2026, focusing on high-performance markets such as AI and medium-voltage MOSFETs, aiming for higher BOM content and sustainable margins in the future.
- Future Outlook: Management anticipates that the March quarter will mark a low point for revenue and margins, with a return to growth expected in the June quarter and a more significant acceleration in 2027, reflecting optimism about new platforms and programs.
See More
Amazon's Earnings Miss Expectations, Shares Drop
- Amazon Earnings Miss: Amazon reported fourth-quarter earnings of $1.95 per share, falling short of the $1.97 consensus estimate, resulting in a 9% drop in shares, highlighting pressures in the competitive e-commerce landscape.
- Reddit Stock Surge: Reddit's stock rose 4% after its fourth-quarter earnings exceeded expectations, coupled with a $1 billion share buyback program, which is expected to boost investor confidence and enhance future shareholder returns.
- Molina Healthcare Loss: Molina Healthcare posted an adjusted loss of $2.75 per share, leading to a 33% decline in shares, primarily due to pressures from Medicaid premium adjustments and Medicare costs, with full-year revenue projected at $44.5 billion, below the $46.55 billion forecasted by analysts.
- Envista Strong Performance: Envista reported fourth-quarter earnings of 38 cents per share and revenue of $750.6 million, resulting in a 14% increase in shares, with expectations of 2% to 4% core sales growth in 2026, indicating robust performance in the dental products market.
See More
Alpha and Omega Semiconductor Reports Q2 Earnings Miss
- Earnings Report: Alpha and Omega Semiconductor's FQ2 non-GAAP EPS of -$0.16 missed expectations by $0.08, indicating challenges in profitability and resulting in a 7.4% drop in share price.
- Revenue Performance: The company reported revenue of $162.3 million, a 6.3% year-over-year decline, although it beat expectations by $1.63 million, reflecting weak market demand that could impact future investment decisions.
- Future Outlook: For fiscal Q3 2026, revenue is expected to be approximately $160 million, with a range of ±$10 million, and a GAAP gross margin forecast of 20.2%, suggesting that cost control efforts may affect profitability.
- Operating Expenses: GAAP operating expenses are projected to be around $52 million, with non-GAAP expenses at $45 million, primarily due to increased R&D spending, which may impact the company's short-term financial performance.
See More
