Allegro Microsystems Q2 sales beat estimates on automotive and industrial demand
Overview
U.S. power chip maker's Q2 sales rose 29% yr/yr, beating analyst expectations
Adjusted EPS for Q2 doubled yr/yr and beat analyst expectations
Company cites broad growth in automotive and industrial markets, with record data center sales
Outlook
Company expects Q3 net sales between $278 mln and $288 mln
Company sees Q3 non-GAAP gross margin between 51.5% and 52.5%
Company expects Q3 non-GAAP diluted EPS between $0.25 and $0.29
Result Drivers
AUTOMOTIVE AND INDUSTRIAL DEMAND - Co said broad sales growth in automotive and industrial end markets, with record data center sales, drove Q2 results
DESIGN WINS AND BOOKINGS - Co said Q2 saw record design wins and increased bookings, strengthening forward demand signals
PROFITABILITY INITIATIVES - Co said execution on strategic priorities to expand profitability and generate strong cash flow contributed to Q2 performance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $276.88 mln | $270.82 mln (12 Analysts) |
Q2 Adjusted EPS | Beat | $0.26 | $0.24 (13 Analysts) |
Q2 EPS | $0.12 | ||
Q2 Gross Margin | 49.20% | ||
Q2 Operating Margin | 12.80% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Allegro Microsystems Inc is $53.00, about 49.8% above its October 28 closing price of $35.37
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 62 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)