Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be announcing earnings results tomorrow before market hours. Here's what to expect.
Last quarter Allegro MicroSystems reported revenues of $278.3 million, up 27.8% year on year, beating analyst revenue expectations by 1.84%. It was a strong quarter for the company, with a significant improvement in its operating margin and an impressive beat of analysts' EPS estimates. On the other hand, its inventory levels materially increased.
Is Allegro MicroSystems buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Allegro MicroSystems's revenue to grow 15.7% year on year to $275 million, slowing down from the 22.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.9%.
Looking at Allegro MicroSystems's peers in the processors and graphics chips segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Intel (NASDAQ:INTC)'s revenues decreased 7.69% year on year, beating analyst estimates by 4.12%, and AMD (NASDAQ:AMD) reported revenues up 4.22% year on year, exceeding estimates by 1.87%. Intel traded up 7.1% on the results, and AMD was down 4.5%
Read the full analysis of Intel's and AMD's results on StockStory.
The fears around raising interest rates have been putting pressure on tech stocks, and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 8.81% over the last month. Allegro MicroSystems is down 12.6% during the same time, and is heading into the earnings with analyst price target of $48.7, compared to share price of $26.2.
The author has no position in any of the stocks mentioned.
