Back to top

Image: Bigstock

Alpha and Omega (AOSL) to Report Q1 Earnings: What to Expect

Read MoreHide Full Article

Alpha and Omega Semiconductor (AOSL - Free Report) is scheduled to report fiscal first-quarter 2022 results on Nov 4.

For the first quarter, the company expects revenues of $180 million (+/- $3 million). The Zacks Consensus Estimate for revenues is pegged at $180 million, indicating an increase of 18.8% from the year-ago reported figure.

Further, the Zacks Consensus Estimate for earnings is pegged at 95 cents per share, suggesting growth of 72.7% from the prior-year reported quarter.

The company beat estimates in all the trailing four quarters, delivering an earnings surprise of 24.3%, on average.

Factors to Consider

Alpha and Omega’s fiscal first-quarter results are likely to benefit from strong end-market demand.

The company has been gaining new customers due to its expanding pipeline of new products, and rising BOM content along with application-specific solutions. This is expected to have persistently supported the quarterly performance.

Strength in the market diversification strategy, broadening product portfolio, deepening customer relationships and growing production scale are expected to have remained tailwinds in the quarter under review.

During the quarter, Alpha and Omega introduced a dual digital multiphase controller named AOZ97774 for telecom and general-purpose applications. It also launched ideal diode protection switches for reverse current protection. These initiatives are likely to have supported the quarterly performance.

Investments in expanding capacity and advancing technological capabilities are likely to have aided the company’s to-be-reported quarter’s performance.

Strength in gaming and home appliances is anticipated to have benefited the Consumer segment in the quarter under discussion.

In addition, major smartphone companies in China, Korea and the United States have been ramping up their production level. This is likely to have increased revenues of the Communications segment in the quarter under discussion.

Also, strength in AC-DC power supply and power tool businesses is expected to have driven the Power Supply and Industrial segment in the fiscal first quarter.

Yet, uncertainties related to the coronavirus pandemic are likely to get reflected in the upcoming quarterly results. Further, supply chain constraints might have remained concerns.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Alpha and Omega this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may also consider as our model shows that these have the right combination of elements to beat on earnings this season.

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2, at present.

HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present.

NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.