Alpha & Omega Semiconductor late Wednesday beat Wall Street's targets for its fiscal fourth quarter and matched views for the current period. AOSL stock rose in extended trading.
The Sunnyvale, Calif.-based company earned an adjusted 95 cents a share on sales of $194 million in the quarter ended June 30. Analysts polled by FactSet expected earnings of 86 cents a share on sales of $190 million. In the year-earlier period, it earned 95 cents a share on sales of $177.3 million.
Three months ago, the chipmaker warned that Covid-related production shutdowns in China would hinder its June-quarter results.
For the current quarter, Alpha & Omega Semiconductor expects to generate $210 million in sales, matching analyst estimates.
AOSL Stock Rises After Report
In after-hours trading on the stock market today, AOSL stock climbed 6.1% to 40.10. During the regular session Wednesday, AOSL stock jumped 6.1% to close at 37.81.
Alpha & Omega Semiconductor makes power-management chips. Its products are used in computers, consumer electronics, home appliances and other devices.
"Our fiscal Q4 was another strong quarter despite the challenge posed by the Covid lockdown in Shanghai," Chief Executive Mike Chang said in a news release. "Our ability to assemble and ship products was severely limited for most of April due to the citywide lockdown in Shanghai. Once cleared to restart operations at the end of April, it also took time for our assembly lines to return to full utilization. Our Shanghai facilities are mostly back to normal and are currently operating at full capacity."
He added, "Looking ahead, we are seeing inventory corrections happening in certain consumer end markets. While we are not immune to current global market conditions, as of today, our demand and backlog are still higher than our overall capacity."
AOSL stock ranks ninth out of 34 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 81 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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