Allegro MicroSystems (ALGM) Reports Q3: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2024/01/31 2:01 am EST

Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be reporting results tomorrow morning. Here's what to look for.

Last quarter Allegro MicroSystems reported revenues of $275.5 million, up 15.9% year on year, in line with analyst expectations. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but underwhelming revenue guidance for the next quarter.

Is Allegro MicroSystems buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Allegro MicroSystems's revenue to grow 3.2% year on year to $256.8 million, slowing down from the 33.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 2.5%.

Looking at Allegro MicroSystems's peers in the processors and graphics chips segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 30% year on year, missing analyst estimates by 0.3% and Intel reported revenues up 9.7% year on year, exceeding estimates by 1.5%. SMART traded up 8.2% on the results, Intel was down .7%.

Read our full analysis of SMART's results here and Intel's results here.

Investors in the processors and graphics chips segment have had steady hands going into the earnings, with the stocks up on average 0.5% over the last month. Allegro MicroSystems is down 10.1% during the same time, and is heading into the earnings with analyst price target of $39.1, compared to share price of $26.5.

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