Group 1: Brokerage Recommendations - Allegro MicroSystems, Inc. has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy, with 75% of recommendations being Strong Buy and 12.5% being Buy [1][2] - Despite the positive ABR, studies suggest limited success of brokerage recommendations in guiding investors towards stocks with the best price increase potential due to analysts' inherent biases [2][3] - Analysts employed by brokerage firms tend to be overly optimistic, often issuing more favorable ratings than warranted, which can mislead investors [5][6] Group 2: Zacks Rank vs. ABR - The Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to the ABR, which is based solely on brokerage recommendations [4][5] - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, while the ABR may not always be current [6] - Allegro MicroSystems, Inc. currently holds a Zacks Rank of 5 (Strong Sell) due to a 2.6% decline in the consensus earnings estimate over the past month, indicating growing pessimism among analysts [7]

Core Insights - Investors are increasingly focusing on mid-cap stocks to enhance their portfolios, particularly in the context of the ongoing AI boom [1] - The total addressable market for enterprise software is expected to grow significantly, presenting opportunities for mid-cap stocks [1] Group 1: Qualys (QLYS) - Qualys is a leader in cloud security and compliance, with over 10,000 customers and a strong position in the cybersecurity sector [2] - The company’s revenue for FY23 increased by 13% year-over-year to $554.5 million, with net income rising to $151.6 million, or $4.03 per share [2] - Qualys is guiding for double-digit revenue growth in Q1 FY24, with GAAP EPS projected in the range of $0.84 to $0.92 [2] Group 2: Science Applications International (SAIC) - SAIC is an aerospace and defense contractor with a strong AI strategy and a diverse portfolio of cybersecurity and cloud solutions [3] - In Q3 2023, SAIC's net income and EPS increased by 16% and 21%, respectively, despite flat revenue [3][4] - The company has a backlog of $23.1 billion, indicating strong future growth potential [4] Group 3: Allegro MicroSystems (ALGM) - Allegro MicroSystems is a global leader in sensor and power integrated circuits, having shipped over 11 billion integrated circuits [5] - The company reported a 16% year-over-year revenue increase to $276 million, with E-Mobility growth accelerating by 60% year-over-year [6] - Allegro's technology is crucial for the AI revolution, particularly with the expansion of data centers [5][6]

Core Insights - Allegro MicroSystems, Inc. is a global leader in power and sensing semiconductor solutions, focusing on motion control and energy-efficient systems [1][2] - The company will present at Morgan Stanley's Technology, Media & Telecom Conference on March 4, 2024, with CFO Derek D'Antilio participating in a fireside chat [1] Company Overview - Allegro MicroSystems designs, develops, and manufactures sensor integrated circuits and application-specific analog power ICs, targeting automotive and industrial markets [2] - The product portfolio supports electrification of vehicles, automotive ADAS safety features, Industry 4.0 automation, and power-saving technologies for data centers and clean energy applications [2]

Group 1: Brokerage Recommendations - Allegro MicroSystems, Inc. has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy [1] - Out of eight recommendations, six are Strong Buy and one is Buy, accounting for 75% and 12.5% of all recommendations respectively [1] - Despite the positive ABR, studies suggest limited success of brokerage recommendations in predicting stock price increases [2] Group 2: Analyst Bias and Zacks Rank - Brokerage analysts often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [2][3] - Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and has shown a strong correlation with near-term stock price movements [3][5] - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR which may not be up-to-date [5] Group 3: Earnings Estimates and Investment Outlook - The Zacks Consensus Estimate for Allegro MicroSystems has declined by 3.4% over the past month to $1.32, indicating growing pessimism among analysts [6] - The decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for Allegro MicroSystems, suggesting potential stock price decline [6] - Investors are advised to approach the Buy-equivalent ABR with caution given the negative earnings outlook [6]

MANCHESTER, N.H., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. ("Allegro") (NASDAQ:ALGM), a global leader in power and sensing solutions for motion control and energy efficient systems, today announced the launch of its new high-bandwidth current sensors, the ACS37030 and the ACS37032, which enable high-performance power conversion with GaN and SiC technologies in electrified vehicles, clean energy solutions and data center applications. Current high-power-density GaN and SiC FET charging an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _____________ Commission File Number: 001-39675 ALLEGRO MICROSYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 46-2405937 (S ...

Financial Data and Key Metrics Changes - Sales for Q3 were $255 million, up 2% year-over-year, with gross margin at 54.6% and operating income at 27.2% [6][15] - Earnings per share were $0.32, exceeding the high end of guidance by 10% [15] - Automotive sales reached $195 million, an 18% increase year-over-year, representing 76% of total sales [15] - E-mobility sales increased by 45% year-over-year, now accounting for 54% of automotive sales [15][46] Business Line Data and Key Metrics Changes - Sales in strategic growth areas, including e-mobility and industrial, rose approximately 20% year-over-year to $150 million, making up 59% of total sales [6][15] - Industrial sales were $46 million, down 25% sequentially and 14% year-over-year [15] - Magnetic sensor sales were $154 million, declining 13% sequentially but flat year-over-year [16] Market Data and Key Metrics Changes - Sales by geography were balanced: 30% in China, 24% in the rest of Asia, 17% in Japan, 15% in Europe, and 14% in the Americas [16] - The automotive market is expected to remain stable with growth in xEVs, which includes battery electric vehicles and hybrids [10][11] Company Strategy and Development Direction - The company is focused on maximizing growth in strategic areas while optimizing profitability and cash flow [6][14] - The integration of the Crocus acquisition is progressing well, enhancing the magnetic-sensing IC portfolio [9][20] - The company aims to close over $1 billion in design wins for fiscal year 2024, with the majority expected to convert to revenue over the next three years [14] Management's Comments on Operating Environment and Future Outlook - Management expects continued inventory digestion across markets in the short term but remains confident in above-market growth for the automotive business in fiscal year 2024 [12][21] - The fourth quarter sales outlook is projected between $230 million and $240 million, reflecting ongoing inventory digestion [20] - Management anticipates Q1 of fiscal 2025 to be the trough quarter for inventory levels [21] Other Important Information - The company is investing in localizing parts of its supply chain in China to enhance relationships with local partners [33][34] - The company is managing material purchases to align with current production levels, expecting a decline in capital expenditures by approximately 30% in the second half of fiscal 2024 [19][20] Q&A Session Summary Question: Guidance for the March quarter and June quarter dynamics between auto and industrial segments - Management indicated that inventory digestion is expected across all end markets, particularly in industrial, with automotive demand remaining stable [24][25] Question: Expectations for automotive revenue growth in fiscal 2024 - Management expects automotive sales to grow in the high teens, significantly outpacing the overall market growth [28][46] Question: Factors affecting fourth quarter gross margin guidance - Management noted that pricing dynamics and distribution mix are contributing to the expected decline in gross margin [29][30] Question: Investments in China and local partnerships - Management confirmed investments in localizing supply chains in China to build trust with domestic customers [33][34] Question: Customer sentiment regarding EVs in the U.S. - Management observed significant R&D investments from OEMs in electrifying their fleets, indicating strong design activity despite market sentiment [36][37] Question: Design win activity in data centers, specifically for AI liquid cooling - Management highlighted that their power solutions are being utilized in innovative liquid cooling solutions for AI data centers, indicating strong design win activity [40][41] Question: Confidence in inventory normalization by June quarter - Management expects inventory levels to normalize by Q1 of fiscal 2025, following historical patterns of inventory digestion [42][43] Question: Expectations for gross margin recovery - Management anticipates gross margins to remain in the 53% to 54% range in the near term, with potential recovery as distribution normalizes [63][65]

–Total Sales Increased 2% Year-over-Year ––E-Mobility Drives 18% Year-over-Year Increase in Automotive Sales – MANCHESTER, N.H., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. ("Allegro" or the "Company") (NASDAQ:ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its third quarter ended December 29, 2023. "We delivered third-quarter net sales of $255 million, up 2% year-over-year, driven by ...

Allegro MicroSystems (ALGM) is slated to release third-quarter fiscal 2024 results on Feb 1.For the fiscal third quarter, revenues are expected in the range of $250-$260 million.Non-GAAP earnings are anticipated between 27 cents and 31 cents per share.The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $255 million, suggesting 2.5% growth from the figure reported in the year-ago quarter. The consensus mark for earnings has been steady at 29 cents per share in the past 30 days, sugges ...

The overall earnings for the semiconductor industry this earnings season is expected to be better than the year-ago quarter. After a challenging period marked by economic headwinds and disruptions in the supply chain, semiconductor stocks appear to be on the brink of a significant comeback, fueled by a steady increase in sales.The semiconductor market grappled with challenges arising from pandemic-induced disruptions in the supply chain and the Federal Reserve's stringent monetary policies, which subdued de ...