What drove AOSL's EPS surprises in 2024 and 2025?

Alpha and Omega Semiconductor (AOSL) experienced a decline in EPS in 2025 Q2, with an EPS of -$0.23, missing the forecasted $0.21. This marks a significant drop from the previous quarter's EPS of $0.21. The EPS decline can be attributed to several factors: 1. **Seasonal Declines**: AOSL faced seasonal declines in major segments, such as gaming notebooks, tablets, and wearables, which impacted overall performance. 2. **Gross Margin Pressure**: The company's gross margin decreased to 24.2% in Q2 2025, down from 25.5% in the previous quarter. This decline in gross margin likely contributed to the negative EPS surprise. 3. **Consumer Segment Challenges**: The consumer segment saw a significant sequential revenue decline of 28.8%, driven by seasonality and pullbacks in wearables. In summary, AOSL's EPS decline in 2025 Q2 was likely driven by a combination of seasonal declines, gross margin pressure, and challenges in the consumer segment. |code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code| |---|---|---|---|---|---|---| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2024 Q3|1.5006E8|-0.39|185| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2024 Q4|1.61296E8||185| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2025 Q1|1.81887E8|-0.09|185| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2025 Q2|1.73156E8|-0.23|185| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2024 Q3|42.64705882352941|-0.39|185| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2025 Q1|-147.3684210526316|-0.09|185| |AOSL|AOSL.O|Alpha and Omega Semiconductor|2025 Q2|-130|-0.23|185|