Alpha & Omega Semiconductor
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.
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 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.
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.
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.
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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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 of Motley 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.