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

Allegro MicroSystems (NASDAQ:ALGM) released its quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.21 by $0.02, FiscalAI reports. The firm had revenue of $259.24 million for the quarter, compared to analyst estimates of $251.44 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.Allegro MicroSystems’s revenue for the quarter was up 27.5% on a year-over-year basis. 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 opened at $41.45 on Friday. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The firm has a market cap of $7.72 billion, a price-to-earnings ratio of -460.50 and a beta of 1.90. Allegro MicroSystems has a 52 week low of $22.41 and a 52 week high of $71.77. The stock has a 50 day moving average of $51.91 and a 200-day moving average of $42.59.

Insider Buying and Selling

In related news, CAO Roald Graham Webster sold 5,217 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Sharon Briansky sold 8,948 shares of the firm’s stock in a transaction that occurred 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 directly owned 75,232 shares in the company, valued at approximately $3,576,529.28. This trade represents a 10.63% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 68,607 shares of company stock worth $3,213,714. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several institutional investors have recently modified their holdings of ALGM. Pacer Advisors Inc. increased its holdings in shares of Allegro MicroSystems by 98.1% during the fourth quarter. Pacer Advisors Inc. now owns 32,313 shares of the company’s stock valued at $852,000 after purchasing an additional 16,003 shares during the period. Invesco Ltd. raised its position in shares of Allegro MicroSystems by 44.0% during the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock worth $201,835,000 after purchasing an additional 2,338,624 shares during the period. Corient Private Wealth LLC boosted its position in shares of Allegro MicroSystems by 52.9% in the 4th quarter. Corient Private Wealth LLC now owns 15,345 shares of the company’s stock valued at $408,000 after purchasing an additional 5,311 shares during the period. Mercer Global Advisors Inc. ADV increased its stake in Allegro MicroSystems by 23.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 10,502 shares of the company’s stock worth $277,000 after purchasing an additional 1,977 shares in the last quarter. Finally, Tudor Investment Corp ET AL increased its stake in Allegro MicroSystems by 201.9% in the 4th quarter. Tudor Investment Corp ET AL now owns 25,665 shares of the company’s stock worth $677,000 after purchasing an additional 17,165 shares in the last quarter. Institutional investors own 56.45% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ALGM. Wall Street Zen downgraded shares of Allegro MicroSystems from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Jefferies Financial Group reiterated a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Weiss Ratings reissued a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Mizuho boosted their price target on Allegro MicroSystems from $54.00 to $67.00 and gave the stock an “outperform” rating in a research note on Monday, June 29th. Finally, TD Cowen lowered their price objective on Allegro MicroSystems from $70.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, July 13th. Nine investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $55.40.

Key Allegro MicroSystems News

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

• Positive Sentiment: Q1 FY2027 results exceeded expectations: Allegro reported adjusted earnings of $0.23 per share, above the $0.21 consensus estimate, while revenue rose 27.5% year over year to $259.24 million, topping estimates of $251.44 million. EPS also increased from $0.09 in the year-earlier quarter. Allegro MicroSystems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Solid near-term outlook: Management guided Q2 FY2027 EPS to $0.23-$0.26 and revenue to $265 million-$275 million, modestly above consensus revenue expectations of $264.5 million. The guidance supports expectations for continued growth. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Needham raised its price target from $55 to $57 and maintained a Buy rating, implying substantial potential upside from recent trading levels. Needham Raises Allegro MicroSystems Price Target
• Neutral Sentiment: Analyst views remain mixed: A separate assessment said ALGM’s fair value edged higher but characterized analyst commentary as mixed, suggesting that the earnings beat has not produced a uniformly bullish view of the stock. Allegro MicroSystems Fair Value Edges Higher After Mixed Analyst Commentary
• Negative Sentiment: Profitability remains a concern: Although operating results improved, Allegro reported a negative net margin of 1.67%. Investors may also be taking profits or demanding stronger forward growth after the earnings beat, limiting the immediate stock reaction. Allegro MicroSystems Q1 2027 Earnings Call Transcript

Allegro MicroSystems Company Profile

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.