Allegro MicroSystems (NASDAQ:ALGM) Issues Earnings Results, Beats Expectations By $0.01 EPS

Allegro MicroSystems (NASDAQ:ALGM) posted its earnings results on Thursday. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.01, FiscalAI reports. Allegro MicroSystems had a positive return on equity of 2.90% and a negative net margin of 3.60%.The business had revenue of $229.21 million during the quarter, compared to analyst estimates of $220.78 million. During the same quarter last year, the firm earned $0.07 earnings per share. The company’s revenue for the quarter was up 28.9% compared to the same quarter last year.

Here are the key takeaways from Allegro MicroSystems’ conference call:

• Beat guidance in Q3 with $229 million in sales and non-GAAP EPS of $0.15, while gross margin improved to 49.9% and EPS rose 114% year?over?year, highlighting strong operating leverage.
• Bookings and backlog reached multi?quarter highs with significant design wins across ADAS, xEV, and data center, supporting future content and revenue upside.
• Data center became a record 10% of sales (up 31% sequentially); fan drivers are the current growth engine while higher?margin current sensors and new SiC isolated gate drivers are ramping and being broadly sampled.
• Q4 guidance calls for $230M–$240M in sales and 49–51% gross margin (midpoint +22% YoY), but management expects automotive to be flat to slightly down (still ~20% below its prior peak), making near?term mix a key risk.
• Balance sheet and cash generation remain healthy: Q3 free cash flow was $41 million (18% of sales), cash of $163 million, and the term loan was repriced lower to SOFR+175bps, with net leverage near 1x.

Allegro MicroSystems Stock Up 0.7%

Allegro MicroSystems stock traded up $0.25 during mid-day trading on Thursday, hitting $34.80. 2,181,120 shares of the company’s stock were exchanged, compared to its average volume of 2,402,220. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $39.89. The stock has a 50 day moving average of $28.72 and a two-hundred day moving average of $29.77. The stock has a market cap of $6.44 billion, a P/E ratio of -216.90 and a beta of 1.61. The company has a current ratio of 3.89, a quick ratio of 2.48 and a debt-to-equity ratio of 0.30.

Institutional Investors Weigh In On Allegro MicroSystems

Several hedge funds have recently modified their holdings of ALGM. Centaurus Financial Inc. bought a new position in Allegro MicroSystems during the third quarter worth about $161,000. NewEdge Advisors LLC raised its position in Allegro MicroSystems by 12,315.0% in the 3rd quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock worth $73,000 after purchasing an additional 2,463 shares during the last quarter. Castleark Management LLC lifted its holdings in Allegro MicroSystems by 29.4% during the 3rd quarter. Castleark Management LLC now owns 133,508 shares of the company’s stock worth $3,898,000 after buying an additional 30,348 shares in the last quarter. XTX Topco Ltd boosted its position in Allegro MicroSystems by 432.8% in the 3rd quarter. XTX Topco Ltd now owns 50,358 shares of the company’s stock valued at $1,470,000 after buying an additional 40,907 shares during the last quarter. Finally, Voleon Capital Management LP acquired a new position in shares of Allegro MicroSystems during the third quarter valued at $412,000. 56.45% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. UBS Group lifted their price objective on shares of Allegro MicroSystems from $38.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, October 31st. Barclays increased their price objective on shares of Allegro MicroSystems from $30.00 to $35.00 and gave the stock an “overweight” rating in a research note on Friday, October 31st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Bank of America boosted their price objective on Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a research report on Wednesday, January 21st. Finally, Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $38.89.

About Allegro MicroSystems

Allegro MicroSystems, Inc (NASDAQ: ALGM) is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro’s product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.