What To Expect From Allegro MicroSystems’s (ALGM) Q3 Earnings

Kayode Omotosho /
2023/01/30 4:30 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 $237.6 million, up 22.7% year on year, beating analyst revenue expectations by 5.61%. It was a very strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.

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This quarter analysts are expecting Allegro MicroSystems's revenue to grow 31.3% year on year to $245.2 million, improving on the 13.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 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 4.91%.

Looking at Allegro MicroSystems's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Intel's revenues decreased 31.5% year on year, missing analyst estimates by 3.1% and Texas Instruments reported revenue decline of 3.35% year on year, exceeding estimates by 0.92%. Intel traded down 7.11% on the results, Texas Instruments was up 0.62%. Read our full analysis of Intel's results here and Texas Instruments's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 18.1% over the last month. Allegro MicroSystems is up 20.3% during the same time, and is heading into the earnings with analyst price target of $35.00, compared to share price of $35.30.

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