Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.02, FiscalAI reports. The company had revenue of $259.24 million for 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%. Allegro MicroSystems’s revenue was up 27.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.09 EPS. 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 Price Performance
Shares of ALGM traded down $0.76 during trading hours on Thursday, reaching $41.45. The company had a trading volume of 6,152,679 shares, compared to its average volume of 2,646,623. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. Allegro MicroSystems has a 12-month low of $22.41 and a 12-month high of $71.77. The firm has a 50 day simple moving average of $51.97 and a 200-day simple moving average of $42.52. The company has a market capitalization of $7.72 billion, a price-to-earnings ratio of -460.50 and a beta of 1.90.
Analyst Ratings Changes
Check Out Our Latest Analysis on ALGM
Insider Activity at Allegro MicroSystems
In other Allegro MicroSystems news, CAO Roald Graham Webster sold 5,217 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the transaction, the chief accounting officer directly owned 13,106 shares in the company, valued at approximately $588,197.28. This represents a 28.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the sale, the senior vice president owned 69,687 shares of the company’s stock, valued at approximately $3,673,898.64. The trade was a 6.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 68,607 shares of company stock valued at $3,213,714 in the last ninety days. Company insiders own 0.50% of the company’s stock.
Institutional Trading of Allegro MicroSystems
A number of institutional investors have recently bought and sold shares of the company. Kestra Advisory Services LLC purchased a new position in shares of Allegro MicroSystems in the fourth quarter valued at $34,000. CIBC Private Wealth Group LLC boosted its position in shares of Allegro MicroSystems by 14,844.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after buying an additional 1,336 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in Allegro MicroSystems by 85.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock valued at $38,000 after acquiring an additional 669 shares during the last quarter. Federation des caisses Desjardins du Quebec acquired a new stake in Allegro MicroSystems in the 4th quarter valued at about $57,000. Finally, NewEdge Advisors LLC increased its holdings in Allegro MicroSystems by 12,315.0% during the 3rd quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock valued at $73,000 after acquiring an additional 2,463 shares in the last quarter. 56.45% of the stock is currently owned by hedge funds and other institutional investors.
Key Stories Impacting Allegro MicroSystems
Here are the key news stories impacting Allegro MicroSystems this week:
- Positive Sentiment: Quarterly earnings and revenue beat estimates: Allegro reported fiscal first-quarter 2027 EPS of $0.23, above the $0.21 consensus and up from $0.09 a year earlier. Revenue reached $259.24 million, exceeding the $251.44 million estimate and rising 27.5% year over year. Allegro MicroSystems beats Q1 earnings and revenue estimates
- Positive Sentiment: Forward guidance was slightly ahead of expectations: Management forecast fiscal-second-quarter EPS of $0.23 to $0.26, compared with the $0.23 analyst consensus, and revenue of $265 million to $275 million versus expectations of $264.5 million. Allegro MicroSystems reports first-quarter 2027 results
- Positive Sentiment: Analyst sentiment improved: Needham raised its price target from $55 to $57 and assigned a “Buy” rating. The new target represents approximately 37.5% potential upside from the cited $41.45 reference price.
- Neutral Sentiment: The results reinforce Allegro’s growth momentum in power and sensing semiconductor solutions, but the company still reported a negative net margin, which could temper enthusiasm until profitability improves.
- Negative Sentiment: The weaker share-price reaction, despite the earnings beat and upbeat guidance, suggests the strong results may have been largely anticipated. Elevated trading volume also points to heightened selling or “sell-the-news” activity.
About Allegro MicroSystems
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.
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