Alpha & Omega Semiconductor (NASDAQ:AOSL) stock surged 5.01% in Friday's pre-market trading session, following the company's mixed second-quarter fiscal 2025 earnings report and outlook.
The semiconductor company beat revenue and earnings estimates for the quarter, but its gross margin took a hit due to pricing competition. Revenue grew 4.8% year-over-year to $173.2 million, surpassing expectations. However, the company reported a wider net loss of $6.61 million or $0.23 per share, further deteriorating from the prior year's loss of $0.10 per share.
While Alpha & Omega Semiconductor expects a seasonal decline in the third quarter, the company remains optimistic about long-term growth prospects in the automotive and renewable energy markets. However, concerns remain about the company's ability to maintain profitability amid intense pricing competition in the industry.