Allegro Microsystems Inc Down 8.91% To $47.01 After Earnings Beat

Jul 03, 2023

Allegro MicroSystems Inc (ALGM) reported better than expected earnings this morning for Q1 2024. Wall Street earnings per share (EPS) projections for Allegro Microsystems Inc were at $0.37. The company beat those estimates with an EPS of $0.39. The earnings per share of $0.39 (which represents a -5% EPS surprise) led to the company's profits rising 63% compared to last year when the firm reported an EPS of $0.24. The increase in Allegro Microsystems Inc's annual growth rate represents how the business is performing well amid recent economic conditions. Revenues were upbeat at $278.3 million. That is an increase of 27.80% in revenues from the year-ago report and is 1.20% higher than consensus estimates set at $275 million. The stock is down 8.91% to $47.01 after the report.The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.Prior to the report, InvestorsObserver gave the stock an overall score of 67. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.Allegro Microsystems Inc is a designer, developer, fabless manufacturer and marketer of sensor ICs and application-specific analog power ICs enabling the critical emerging technologies in the automotive and industrial markets. It is a supplier of power ICs. Its sensor IC allow customers to precisely measure motion, speed, position and current. At the same time, its power ICs include high-temperature and high-voltage capable motor driver, power management and LED driver ICs. Its products are divided into three categories such as SENSE which include Current Sensors, Switches and Latches, Linear and Angular Position, Magnetic Speed Sensors, and Photonics; REGULATE which include Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC and Stepper Driver.