Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be reporting earnings this Thursday before market open. Here’s what to expect.
Allegro MicroSystems beat analysts’ revenue expectations last quarter, reporting revenues of $229.2 million, up 28.9% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ 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, the market is expecting Allegro MicroSystems’s revenue to grow 22.2% year on year, a reversal from the 19.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allegro MicroSystems rarely misses Wall Street’s revenue estimates.
Looking at Allegro MicroSystems’s peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lattice Semiconductor delivered year-on-year revenue growth of 42.2%, beating analysts’ expectations by 3.6%, and Intel reported revenues up 7.2%, topping estimates by 9.6%. Lattice Semiconductor traded down 2.6% following the results while Intel was up 23.6%.
Read our full analysis of Lattice Semiconductor’s results here and Intel’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 42.2% on average over the last month. Allegro MicroSystems is up 53.2% during the same time and is heading into earnings with an average analyst price target of $46.75 (compared to the current share price of $50.28).
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