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Allegro Microsystems Q2 sales beat estimates on automotive and industrial demand

By Reuters News


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


Reuters Recommended Reads

  • Oct 28 - Littelfuse Q3 sales rise 23% on electronics segment strength

  • Oct 28 - TE Connectivity Q4 sales beats on industrial, transportation segments growth

  • Oct 28 - Melexis CEO says China now beats Europe in new design wins


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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