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What's in Store for Alpha and Omega's (AOSL) Q4 Earnings?

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Alpha and Omega Semiconductor Limited AOSL is scheduled to report fourth-quarter fiscal 2021 results on Aug 11.

For the fiscal fourth quarter, the company expects revenues of $167-$173 million. The Zacks Consensus Estimate for the same is pegged at $170 million, indicating an improvement of 38.9% from the prior-year quarter’s reported number.

Further, the Zacks Consensus Estimate for earnings stands at 75 cents per share, indicating growth of 158.6% from the year-ago quarter’s reported figure.

The company’s bottom line beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 32.9%, on average.

Alpha and Omega Semiconductor Limited Price and EPS Surprise

Alpha and Omega Semiconductor Limited Price and EPS Surprise
Alpha and Omega Semiconductor Limited Price and EPS Surprise

Alpha and Omega Semiconductor Limited price-eps-surprise | Alpha and Omega Semiconductor Limited Quote

Factors at Play

Alpha and Omega is expected to have gained from the strong battery protection business in the soon-to-be-reported quarter.

The coronavirus pandemic-induced growing sales of gaming, TVs and home appliances are expected to have benefited the company’s performance in the consumer end-market in the fiscal fourth quarter.

Additionally, in the quarter under review, the company is expected to have capitalized on the growing proliferation of USB Type-C in mobiles, laptops, televisions, and other electronic devices on the heels of its latest series of single-channel Transient Voltage Suppressor (TVS), which includes AOZ8S303BLS-24 and AOZ8S305BLS-24, which are designed to deliver high-speed line protection.

The growing shipments of Alpha and Omega’s products required in computing and gaming applications are expected to have contributed well to its performance in the quarter to be reported.

Strengthening momentum across new gaming systemsand PC graphics card platforms is anticipated to have aided the company’s multi-sockets design wins in the fiscal fourth quarter.

Increasing uptake of gaming applicationsand digital power solutions is expected to have driven growth in the company’s graphics card business.

Its introduction of a series of Smart Power Stages - AOZ527xQI is likely to have helped it in gaining traction across high-performance GPUs, gaming laptops, servers, 5G, and AI. This is expected to have contributed well to top-line growth.

Apart from this, the impacts of improving supply chains in Alpha and Omega’s JV fab in Chongqing are likely to get reflected in its fiscal fourth-quarter results.

However, sluggishness in the consumer segment due to weak TV business is expected to have negatively impacted the company’s performance in the quarter under discussion.

Softness in the smartphone category is expected to have been an overhang for its communications segment in the fiscal fourth quarter.

Production delays are expected tohave been headwinds for the company’s graphic card business inthe soon-to-be-reported quarter.

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.

Alpha and Omega has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

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

CyberArk Software CYBR has an Earnings ESP of +37.93% and it sports a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies A has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present.

Semtech SMTC has an Earnings ESP of +2.02% and it carries a Zacks Rank of 2 at present.


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Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Semtech Corporation (SMTC) : Free Stock Analysis Report

Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report

CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

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