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What's in Store for Allegro MicroSystems' (ALGM) Q2 Earnings?

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Allegro MicroSystems (ALGM - Free Report) is slated to release second-quarter fiscal 2024 results on Nov 2.

For the fiscal second quarter, revenues are expected in the range of $270-$280 million.

Non-GAAP earnings are anticipated between 35 cents and 39 cents per share.

The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $275 million, suggesting a 15.71% growth from the figure reported in the year-ago quarter.
 
The consensus mark for earnings has been steady at 37 cents per share in the past 30 days, calling for a 19.35% growth from the figure reported in the year-ago quarter.
 

Allegro MicroSystems, Inc. Price and EPS Surprise

Allegro MicroSystems, Inc. Price and EPS Surprise

Allegro MicroSystems, Inc. price-eps-surprise | Allegro MicroSystems, Inc. Quote

Allegro’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.20%.

Let’s see how things have shaped up for the upcoming announcement.

 

Factors Likely to Have Impacted Q2 Performance

Allegro banks on an innovative product portfolio providing differentiated solutions and strong momentum in e-mobility, clean energy, and automation segments.

Its performance in the fiscal second quarter is likely to have benefited from higher demand for e-Mobility applications, including ADAS, magnetic sensor and power IC product portfolios.

The company's continuous R&D and customer support investments align strategically with high-growth megatrends in the Automotive and Industrial markets. The launch of the first Power-Thru device is expected to have contributed to its e-mobility, industrial, and automotive markets in the to-be-reported quarter, demonstrating rapid technology integration capabilities and commitment to innovation.

Allegro is expected to have gained from an increase in the internal supply of wafers and die-banks, which improve lead times for customers and reduce past due backlog. This is expected to have been driven by continued improvements in technology and supply chain processes.

However, challenging macroeconomic conditions and fluctuations in the Chinese market are expected to have hurt Allegro’s top line in the fiscal second quarter.

What Our Model Says

The Zacks model predicts that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Allegro has an Earnings ESP of 0.00% 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.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

GoDaddy (GDDY - Free Report) has an Earnings ESP of +8.11% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GoDaddy shares have declined 3.3% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.

Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.

Fastly’s shares have gained 74% year to date. FSLY is set to report its third-quarter 2023 results on Nov 1.

Digital Turbine (APPS - Free Report) has an Earnings ESP of +0.00% and a Zacks Rank #3 at present

Digital Turbine shares have declined 69.4% year to date. APPS is set to report its second-quarter fiscal 2024 results on Nov 8.


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