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 ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Allegro MicroSystems, Inc. (ALGM) .Allegro MicroSystems, Inc. cur ...

The latest trading session saw Allegro MicroSystems, Inc. (ALGM) ending at $28.19, denoting a +0.43% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.22% for the day. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.32%.Shares of the company witnessed a loss of 9.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.64% and the S&P 500's gain of 1. ...

Silicon carbide stocks have emerged as a driving force behind the silicon carbide (SiC) revolution. As demand for high performance semiconductors accelerates, these superstar stocks have positioned themselves for decades of growth. Silicon carbide, known for its exceptional reliability, power density and high thermal conductivity, is becoming increasingly important in the energy storage, electronics and electric vehicle (EV) markets. The global silicon carbide market should reach more than $8 billion by 203 ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Allegro MicroSystems, Inc. (ALGM) , which belongs to the Zacks Electronics - Semiconductors industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.76%.For the last rep ...

In the latest trading session, Allegro MicroSystems, Inc. (ALGM) closed at $26.89, marking a -0.33% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%.The company's shares have seen a decrease of 7.86% over the last month, not keeping up with the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98%.The investment community will be paying close attention to the earnings performance of Allegro MicroSystems, Inc. in its upcoming release. In that report, anal ...

MANCHESTER, N.H., Jan. 11, 2024 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (Nasdaq: ALGM) today announced it plans to release financial results for its third quarter fiscal year 2024 prior to the market open on Thursday, February 1, 2024. Following the press release, Vineet Nargolwala, President and Chief Executive Officer, and Derek D’Antilio, Senior Vice President and Chief Financial Officer, will host a conference call at 8:30 a.m. Eastern Time to discuss the Company’s results and business outlook. A ...