ALGM Earnings Prediction
The chart below shows how ALGM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALGM sees a +3.06% change in stock price 10 days leading up to the earnings, and a +4.47% change 10 days following the report. On the earnings day itself, the stock moves by +1.26%. This data can give you a slight idea of what to expect for the next quarter's release.
ALGM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
187.39M
-31.98%
12.26%
Gross Margin
45.71%
-21.04%
2.05%
Operating Margin
2.17%
-91.80%
-134.07%
Net Margin
-17.94%
-175.25%
70.05%
EPS
-0.18
-152.94%
100.00%
No Data Available
ALGM Earnings Analysis
Allegro MicroSystems, Inc. Common Stock Corporation (ALGM.O) Earnings Conference Call
Positive
Q2 Revenue Performance: 1. Strong Revenue Growth: Allegro MicroSystems reported Q2 sales of $187 million, reflecting a 12% sequential increase despite a 32% year-over-year decline.
Gross Margin Improvement: 2. Improved Gross Margin: The company achieved a gross margin of 48.8%, nearly doubling from 6% in the previous quarter, indicating strong operational efficiency.
Automotive Sales Increase: 3. Significant Automotive Sales: Sales to automotive customers reached $142 million, an 8% sequential increase, demonstrating resilience in the automotive segment.
New Product Success: 4. Successful New Product Launches: Allegro introduced two new XtremeSense TMR current sensors, enhancing their product portfolio and securing important design wins across various applications.
Strong Cash Reserves: 5. Healthy Cash Position: The company ended Q2 with approximately $200 million in cash, supporting ongoing investments and operational stability.
Negative
Sales Decline Analysis: 1. Significant Year-over-Year Sales Decline: Q2 sales decreased by 32% compared to Q2 of fiscal 2024, highlighting a substantial drop in demand.
Automotive Sales Decline: 2. Automotive Sales Drop: Sales to automotive customers were $142 million, reflecting a 28% year-over-year decline despite a sequential increase.
Sales Decline Analysis: 3. Industrial Sales Decline: Industrial and other sales were $45 million, which is a 42% decrease year-over-year, indicating ongoing challenges in that segment.
Non-Cash GAAP Loss: 4. Non-Cash GAAP Loss: Allegro recorded a $35 million non-cash GAAP loss due to a forward repurchase fair value adjustment related to share repurchase transactions.
Q3 Sales Decline Forecast: 5. Lower Q3 Sales Guidance: The company expects third quarter sales to decline to a range of $170 million to $180 million, indicating a continued downward trend from Q2.
ALGM FAQs
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ALGM Earning Call Sentiment
Allegro MicroSystems, Inc. (ALGM) Q2 2025 Earnings Call Transcript
1.0x
00:00
00:00
ALGM.O
-3.62%Positive
The earnings call presents a mixed picture. While there is positive news such as the share repurchase, sequential sales growth, and optimistic guidance, there are concerns about declining margins, significant year-over-year sales declines, and ongoing inventory challenges. The Q&A section reveals some analyst concerns about inventory levels and management's vague responses, which could dampen investor confidence. Given these factors, the stock price is likely to remain stable within a -2% to 2% range over the next two weeks.
