Allegro MicroSystems (ALGM) Q2 Earnings: What To Expect

Kayode Omotosho /
2022/10/26 7:22 am EDT

Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be reporting earnings tomorrow before market open. Here's what to expect.

Last quarter Allegro MicroSystems reported revenues of $217.7 million, up 15.7% year on year, beating analyst revenue expectations by 4.87%. It was a very strong quarter for the company, with a beat on the bottom line.

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This quarter analysts are expecting Allegro MicroSystems's revenue to grow 16.2% year on year to $225 million, slowing down from the 41.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Allegro MicroSystems Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.81%.

Looking at Allegro MicroSystems's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 17.8% year on year, beating analyst estimates by 3.36% and Texas Instruments reported revenues up 12.8% year on year, exceeding estimates by 1.9%. Lam Research traded up 2.37% on the results, and Texas Instruments was down 4.74%. Read our full analysis of Lam Research's results here and Texas Instruments's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.32% over the last month. Allegro MicroSystems is up 0.13% during the same time, and is heading into the earnings with analyst price target of $30.00, compared to share price of $22.30.

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The author has no position in any of the stocks mentioned.