Allegro MicroSystems ALGM is slated to release third-quarter fiscal 2024 results on Feb 1.
For the fiscal third quarter, revenues are expected in the range of $250-$260 million.
Non-GAAP earnings are anticipated between 27 cents and 31 cents per share.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $255 million, suggesting 2.5% growth from the figure reported in the year-ago quarter.
Allegro MicroSystems, Inc. Price and EPS Surprise
Allegro MicroSystems, Inc. price-eps-surprise | Allegro MicroSystems, Inc. Quote
The consensus mark for earnings has been steady at 29 cents per share in the past 30 days, suggesting a decline of 17.14% from the figure reported in the year-ago quarter.
Allegro’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.42%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Allegro has been benefiting from an innovative product portfolio providing differentiated solutions in magnetic sensing, e-mobility, clean energy and the automation end-market. Its performance in the fiscal third quarter is likely to have benefited from higher demand for e-mobility applications, including Advanced Driver Assistance Systems (ADAS), magnetic sensors and power IC product portfolios.
Allegro aims to continue to provide efficient and reliable solutions for the electrification of vehicles, ADAS safety features, automation for a varied range of industries, and power-saving technologies for data centers and green energy applications.
Allegro acquired Crocus Technology on Oct 31 to expand its innovations in Tunneling Magnetoresistance (TMR) Sensing Technology, boosting its position in the magnetic sensing market to serve customers from industries like automotive, industrial and consumer goods. The acquisition is expected to have added approximately $5 million to net sales in the to-be-reported quarter.
Allegro is expected to have benefited from an increase in the internal supply of wafers and die banks. This is expected to have improved customer lead times and minimized past-due backlog.
However, challenging macroeconomic conditions and higher inventory levels in industrial and consumer goods markets are expected to have hurt Allegro’s top line in the fiscal third quarter.
What Our Model Says
Our proven model predicts an earnings beat for Allegro in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise.
Allegro has an Earnings ESP of +1.16% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform META has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have risen 23.7% in the past six months.
Bill Holdings BILL has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 40.7% in the past six months.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilio is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 8.9% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
