Chip designer Allegro MicroSystems (NASDAQ: ALGM) will be reporting results this Thursday before the bell. Here’s what to expect.
Allegro MicroSystems beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $203.4 million, up 21.9% year on year. It was a satisfactory 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 for active Edge members.
This quarter, analysts are expecting Allegro MicroSystems’s revenue to grow 12.8% year on year to $211.4 million, a reversal from the 32% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 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 1.7% on average.
Looking at Allegro MicroSystems’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 2.8%, beating analysts’ expectations by 3.7%, and Penguin Solutions reported revenues up 8.6%, falling short of estimates by 1.3%. Intel’s stock price was unchanged after the resultswhile Penguin Solutions was down 15.9%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 10% on average over the last month. Allegro MicroSystems is up 4.9% during the same time and is heading into earnings with an average analyst price target of $36.75 (compared to the current share price of $30.60).
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