Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be announcing earnings results tomorrow before market open. Here’s what you need to know.
Allegro MicroSystems met analysts’ revenue expectations last quarter, reporting revenues of $187.4 million, down 32% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Is Allegro MicroSystems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Allegro MicroSystems’s revenue to decline 31.2% year on year to $175.4 million, a reversal from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allegro MicroSystems has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.
Looking at Allegro MicroSystems’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qorvo’s revenues decreased 14.7% year on year, beating analysts’ expectations by 1.4%, and Texas Instruments reported a revenue decline of 1.7%, topping estimates by 3.3%. Texas Instruments traded down 7.5% following the results.
Read our full analysis of Qorvo’s results here and Texas Instruments’s results here.
Investors in the semiconductors segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Allegro MicroSystems is up 2.2% during the same time and is heading into earnings with an average analyst price target of $29.52 (compared to the current share price of $22.35).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.