Allegro MicroSystems (NASDAQ:ALGM) Issues Earnings Results, Beats Estimates By $0.02 EPS

Allegro MicroSystems (NASDAQ:ALGM) released 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. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.The business had revenue of $259.24 million for the quarter, compared to analysts’ expectations of $251.44 million. During the same period in the prior year, the firm posted $0.09 EPS. The firm’s quarterly revenue was up 27.5% on a year-over-year basis. 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 Trading Up 0.1%

NASDAQ:ALGM opened at $41.50 on Friday. The company has a market cap of $7.73 billion, a PE ratio of 691.78 and a beta of 1.90. The company has a current ratio of 3.70, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The company has a 50 day simple moving average of $51.82 and a two-hundred day simple moving average of $42.58. Allegro MicroSystems has a 12 month low of $22.41 and a 12 month high of $71.77.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ALGM. UBS Group boosted their price target on Allegro MicroSystems from $52.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Needham & Company LLC increased their price objective on Allegro MicroSystems from $55.00 to $57.00 and gave the company a “buy” rating in a research report on Thursday. TD Cowen reduced their price objective on Allegro MicroSystems from $66.00 to $48.00 and set a “buy” rating for the company in a report on Friday. Evercore reiterated an “outperform” rating and issued a $53.00 price objective on shares of Allegro MicroSystems in a report on Friday, May 8th. Finally, Morgan Stanley boosted their target price on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research report on Friday. Nine investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $52.80.

More Allegro MicroSystems News

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Allegro exceeded expectations with earnings of $0.23 per share versus the $0.21 consensus and revenue of $259.24 million versus $251.44 million. Revenue increased 27.5% year over year, while EPS rose substantially from $0.09 a year earlier. Allegro MicroSystems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management issued second-quarter revenue guidance of $265 million to $275 million, above the $264.5 million consensus, and EPS guidance of $0.23 to $0.26, at or above expectations. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Record data-center sales, stronger bookings, expanding design wins and increased semiconductor content per system point to sustained AI infrastructure demand. Electrification and automation also provide additional growth opportunities. ALGM Q1 Earnings Call Highlights AI Data Center Growth
• Positive Sentiment: Needham raised its price target from $55 to $57 and maintained a Buy rating, implying substantial potential upside from the referenced $41.50 level.
• Neutral Sentiment: Despite the operating beat, Allegro reported a negative net margin of 1.67%, and the shares remain well below their 52-week high, suggesting investors may be weighing recovery potential against profitability and valuation risks.
• Negative Sentiment: Mizuho cut its price target from $67 to $58, although it retained an Outperform rating. TD Cowen also reduced its target from $66 to $48 while maintaining Buy. These reductions may limit enthusiasm by signaling more cautious assumptions despite the favorable results.

Insider Activity

In related news, SVP Sharon Briansky sold 8,948 shares of Allegro MicroSystems stock in a transaction on Monday, May 11th. The stock was sold at an average price of $47.54, for a total value of $425,387.92. Following the completion of the sale, the senior vice president owned 75,232 shares of the company’s stock, valued at $3,576,529.28. The trade was a 10.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Roald Graham Webster sold 5,217 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total value of $234,138.96. Following the sale, the chief accounting officer owned 13,106 shares of the company’s stock, valued at approximately $588,197.28. This trade represents a 28.47% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 68,607 shares of company stock worth $3,213,714. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Bank of Montreal Can increased its position in shares of Allegro MicroSystems by 5.8% during the 4th quarter. Bank of Montreal Can now owns 14,075 shares of the company’s stock valued at $371,000 after purchasing an additional 770 shares during the last quarter. Brevan Howard Capital Management LP bought a new position in shares of Allegro MicroSystems in the 3rd quarter worth approximately $345,000. Inceptionr LLC boosted its holdings in shares of Allegro MicroSystems by 30.9% in the fourth quarter. Inceptionr LLC now owns 12,939 shares of the company’s stock worth $341,000 after buying an additional 3,057 shares during the last quarter. AQR Capital Management LLC bought a new stake in Allegro MicroSystems during the first quarter valued at approximately $325,000. Finally, Virtu Financial LLC purchased a new stake in Allegro MicroSystems during the third quarter valued at approximately $303,000. 56.45% of the stock is owned by hedge funds and other institutional investors.

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.