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Alpha and Omega semiconductor (AOSL – Free Report) is expected to release the first quarter of fiscal 2022 results on November 4.
For the first quarter, the company expects sales of $ 180 million (+/- $ 3 million). Zacks’ consensus estimate for revenue is set at $ 180 million, which indicates an 18.8% increase from the figure released a year ago.
In addition, Zacks’ consensus estimate for earnings is set at 95 cents per share, suggesting growth of 72.7% from the previous year quarter.
The company has beaten estimates over the past four quarters, delivering a revenue surprise of 24.3% on average.
Factors to consider
Alpha and Omega’s first quarter tax results are expected to benefit from strong end market demand.
The company gained new customers due to its expanding pipeline of new products and increasing BOM content as well as application specific solutions. This should have supported the quarterly performance on a persistent basis.
The strength of the market diversification strategy, the expansion of the product portfolio, the deepening of customer relationships and the increase in the scale of production are expected to remain favorable winds during the quarter under review.
During the quarter, Alpha and Omega introduced a dual digital multiphase controller named AOZ97774 for telecommunications and general applications. It also launched diode protection switches ideal for reverse current protection. These initiatives are likely to have supported quarterly performance.
Investments in capacity expansion and advancement in technology capabilities likely contributed to the company’s reportable quarter performance.
Strength in games and home appliances should have benefited the consumer segment during the quarter under review.
In addition, the major smartphone companies in China, Korea and the United States have increased their production level. This is likely to have increased the revenues of the Communications segment during the quarter under discussion.
Additionally, strength in the AC-DC power supply and power tool business is expected to have boosted the Power Supply and Industrials segment in the first fiscal quarter.
However, the uncertainties related to the coronavirus pandemic should be reflected in the next quarterly results. In addition, supply chain constraints could have remained of concern.
What our model says
Our proven model does not conclusively predict an increase in profits for Alpha and Omega this time around. The combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy) or 3 (hold) ranking increases the odds of beating the winnings. But it is not the case here. You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.
He currently has an ESP on earnings of 0.00% and a Rank 3 of Zacks.
Actions to consider
Here are some stocks that you can also consider as our model shows they have the right mix of elements to beat profits this season.
Applied materials (AMAT – Free Report) has a Revenue ESP of + 0.52% and a Zacks Rank of 2, right now.
HP Inc. (HPQ – Free Report) has an Income ESP of +1.89% and a Zacks Rank of 1, right now.
NetApp, Inc. (NTAP – Free Report) has a Revenue ESP of + 3.70% and a Zacks Rank of 2, right now. You can see The full list of today’s Zacks # 1 Rank stocks here.
