SemiLEDs Corporation (NASDAQ:LEDS) stock rose Wednesday following the company’s announcement of its first-quarter 2026 financial results.
Revenue Surges Year Over Year But Falls Sequentially
The company reported a wider year-over-year loss in its fiscal first quarter, while revenue rose sharply from the same period a year earlier but fell sequentially. The company posted a first-quarter loss of 9 cents per diluted share, compared with a loss of 8 cents per share in the same period last year. Revenue increased to $2.6 million from $1.26 million a year earlier.
On a sequential basis, revenue declined from $13.2 million in the fourth quarter of fiscal 2025. SemiLEDs reported a GAAP net loss of $742,000, or 9 cents per diluted share, compared with a net loss of $1.2 million, or 15 cents per diluted share, in the prior quarter.
Gross margin slipped to 1% from 2% in the previous quarter, while operating margin widened to a negative 39%. Cash and cash equivalents rose slightly to $2.9 million at the end of the quarter, up from $2.6 million at the end of the prior quarter, the company said.
The broader market experienced declines on the previous trading day, with the S&P 500 down 0.09% and the Dow Jones falling 0.14%. This backdrop of mixed performance highlights that while SemiLEDs is facing its own challenges, the overall market sentiment was also cautious.
LEDS Shows Short-Term Strength, Long-Term Weakness
The stock is currently trading 22.9% above its 20-day simple moving average (SMA) and 5.0% below its 100-day SMA, indicating short-term strength but some longer-term weakness. Shares have increased by 28.48% over the past 12 months and are currently positioned closer to their 52-week highs than to their lows.
The RSI is at 51.67, indicating neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is above its signal line, indicating bullish momentum.
The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $2.50
- Key Support: $1.75
LEDS Shares Surge 13.99% in Premarket Trading
LEDS Price Action: SemiLEDs shares were up 13.99% at $2.20 during premarket trading on Wednesday, according to Benzinga Pro data.
Image via Shutterstock
