Allegro MicroSystems (NASDAQ:ALGM) Announces Earnings Results

Allegro MicroSystems (NASDAQ:ALGM) released its quarterly earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02, FiscalAI reports. The company had revenue of $259.24 million during the quarter, compared to analysts’ expectations of $251.44 million. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The business’s quarterly revenue was up 27.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.09 earnings per share. Allegro MicroSystems updated its Q2 2027 guidance to 0.230-0.260 EPS.

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

• Q1 revenue reached $259 million, up 27% year over year and above the high end of guidance, while non-GAAP EPS rose 156% to $0.23. This marked the sixth consecutive quarter of sequential sales growth.
• Data center sales grew 32% sequentially to a record 17% of total revenue, with current sensors representing 22% of data center sales. Management expects fiscal 2027 data center revenue to more than double, supported by rising AI-server power demands and additional opportunities in isolated gate drivers.
• Automotive revenue increased 15% year over year, while bookings and design wins each rose 30%. Allegro cited continued content and share gains in electrified vehicles, ADAS, electromechanical braking, steer-by-wire, and TMR-based sensing.
• Robotics and automation are expected to contribute 3%–4% of fiscal 2027 sales, with new current-sensor and inductive-position-sensor wins at Chinese and North American humanoid robotics customers. Management estimates potential Allegro content above $150 per humanoid by 2030.
• Q2 revenue is expected at $265 million–$275 million, implying 26% year-over-year growth, while EPS is forecast at $0.23–$0.26. Gross margin is guided to 50.75%–51.75% as operating expenses rise for R&D investments and variable compensation, although pricing actions and manufacturing efficiencies are expected to support margins later in the fiscal year.

Allegro MicroSystems Stock Performance

Shares of NASDAQ ALGM traded down $0.76 during mid-day trading on Thursday, hitting $41.45. The company had a trading volume of 6,152,679 shares, compared to its average volume of 2,646,623. The business’s 50-day simple moving average is $51.97 and its 200-day simple moving average is $42.52. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. Allegro MicroSystems has a 12 month low of $22.41 and a 12 month high of $71.77. The firm has a market cap of $7.72 billion, a P/E ratio of -460.50 and a beta of 1.90.

More Allegro MicroSystems News

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Quarterly results exceeded expectations. Allegro reported fiscal first-quarter 2027 EPS of $0.23, versus the $0.21 analyst consensus and $0.09 a year earlier. Revenue increased 27.5% year over year to $259.24 million, topping estimates of $251.44 million. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Forward guidance was slightly above expectations. Allegro forecast fiscal second-quarter 2027 revenue of $265 million to $275 million, compared with the $264.5 million consensus estimate. Its EPS outlook of $0.23 to $0.26 brackets the $0.23 consensus estimate. Allegro MicroSystems Earnings Report
• Positive Sentiment: Needham raised its price target and maintained a bullish view. The firm increased its target from $55 to $57 and assigned a “Buy” rating, implying substantial upside from the referenced trading level. Benzinga Analyst Update
• Neutral Sentiment: The market response has been mixed. ALGM initially ticked up following the results but subsequently traded lower on heavier-than-average volume, indicating that the earnings beat and guidance were not enough to sustain the early gains.
• Negative Sentiment: Profitability remains a concern. Although Allegro beat on adjusted earnings, its reported net margin remained negative at 1.67%. Investors may therefore be looking for continued improvement in margins and bottom-line earnings before assigning a higher valuation.

Insider Activity

In other news, SVP Richard Madormo sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the completion of the transaction, the senior vice president directly owned 69,687 shares of the company’s stock, valued at approximately $3,673,898.64. This trade represents a 6.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Susan D. Lynch sold 16,711 shares of Allegro MicroSystems stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $45.46, for a total transaction of $759,682.06. Following the sale, the director owned 12,805 shares in the company, valued at approximately $582,115.30. This trade represents a 56.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is owned by insiders.

Institutional Trading of Allegro MicroSystems

Institutional investors have recently bought and sold shares of the stock. Mackenzie Financial Corp acquired a new stake in shares of Allegro MicroSystems during the third quarter worth approximately $283,000. Mercer Global Advisors Inc. ADV raised its stake in shares of Allegro MicroSystems by 23.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,502 shares of the company’s stock valued at $277,000 after acquiring an additional 1,977 shares during the last quarter. Polar Asset Management Partners Inc. acquired a new position in shares of Allegro MicroSystems in the 3rd quarter worth approximately $262,000. Brooklyn Investment Group grew its position in Allegro MicroSystems by 321.6% during the 3rd quarter. Brooklyn Investment Group now owns 7,335 shares of the company’s stock worth $214,000 after acquiring an additional 5,595 shares during the last quarter. Finally, Canada Pension Plan Investment Board grew its position in Allegro MicroSystems by 154.2% during the 2nd quarter. Canada Pension Plan Investment Board now owns 6,100 shares of the company’s stock worth $209,000 after acquiring an additional 3,700 shares during the last quarter. Institutional investors and hedge funds own 56.45% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ALGM. Evercore reissued an “outperform” rating and set a $53.00 price objective on shares of Allegro MicroSystems in a research report on Friday, May 8th. Mizuho raised their target price on Allegro MicroSystems from $54.00 to $67.00 and gave the company an “outperform” rating in a report on Monday, June 29th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $62.00 price target on shares of Allegro MicroSystems in a research report on Thursday, May 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Finally, Wells Fargo & Company increased their price objective on Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Nine equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $55.40.

Allegro MicroSystems Company Profile

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.