分组1 - Allegro MicroSystems reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.03 per share a year ago [1] - The company posted revenues of $203.41 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.85% and up from $166.92 million year-over-year [2] - Allegro MicroSystems shares have increased approximately 54.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $208.87 million, and for the current fiscal year, it is $0.53 on revenues of $853.89 million [7] - The Electronics - Semiconductors industry is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance & Guidance - Allegro's 1QFY26 net sales reached $203 million, exceeding the high end of guidance[10] - The gross margin for 1QFY26 was 48.2%, surpassing the guidance and showing a 260 bps quarter-over-quarter improvement[10, 14] - EPS for 1QFY26 was $0.09, above the midpoint of guidance[10, 14] - Free cash flow for 1QFY26 was $51 million, representing 25% of sales[14] - The company made $35 million in voluntary debt repayments during the quarter[14] - 2QFY26 sales guidance is between $205 million and $215 million, implying 12% year-over-year growth[19] - 2QFY26 gross margin is expected to be between 48% and 50%, and EPS between $0.10 and $0.14[19] Business Growth & Strategy - Net sales increased 22% year-over-year[15] - Auto sales increased 13% year-over-year, driven by e-Mobility which grew 31% year-over-year[15] - Industrial and Other sales increased 50% year-over-year, with strength in Data Center and Robotics & Automation[15] - 75% of design wins were in strategic focus areas, including xEV traction inverters and ADAS/EV applications[15]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Allegro MicroSystems reported strong Q1 FY2026 results with significant sales growth and increased non-GAAP EPS, projecting continued growth and improved profitability for Q2 FY2026 [First Quarter Fiscal Year 2026 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Highlights) Allegro MicroSystems reported strong Q1 FY2026 results with significant year-over-year sales growth driven by e-Mobility and Industrial sectors, alongside a substantial increase in non-GAAP EPS and robust free cash flow - Sales increased **22%** year-over-year to **$203 million**, led by growth in e-Mobility (**31%** YoY) and Industrial and Other (**50%** YoY)[1](index=1&type=chunk)[2](index=2&type=chunk) - Non-GAAP Diluted EPS **was $0.09**, increasing **nearly 3x** year-over-year[2](index=2&type=chunk) - Free cash flow **was $51 million**, or **25%** of sales, with **$35 million** in voluntary debt repayments during the quarter[2](index=2&type=chunk) Key Financial Metrics (in thousands) | Metric | June 27, 2025 (in thousands) | June 28, 2024 (in thousands) | YoY Change (%) | | :-------------------- | :------------ | :------------ | :------------- | | Total Net Sales | $203,405 | $166,919 | 22% | | Automotive Net Sales | $144,264 | $127,394 | 13% | | Industrial & Other Net Sales | $59,141 | $39,525 | 50% | | GAAP Gross Margin % | 44.9% | 44.8% | 0.1 pp | | Non-GAAP Gross Margin % | 48.2% | 48.8% | -0.6 pp | | GAAP Diluted EPS | $(0.07) | $(0.09) | 22.2% | | Non-GAAP Diluted EPS | $0.09 | $0.03 | 200% | [Business Outlook for Second Quarter Fiscal Year 2026](index=1&type=section&id=Business%20Outlook%20for%20Second%20Quarter%20Fiscal%20Year%202026) The company projects continued growth for Q2 FY2026, with anticipated net sales between $205 million and $215 million, and improved non-GAAP profitability metrics - Total net sales are **expected to be in the range of $205 million to $215 million**, implying a **12%** year-over-year growth at the midpoint[3](index=3&type=chunk) - Non-GAAP Gross Margin is expected to be **between 48% and 50%**[5](index=5&type=chunk) - Non-GAAP Operating expenses are expected to be **approximately $73 million**[5](index=5&type=chunk) - Non-GAAP Diluted Earnings per Share is expected to be between **$0.10** and **$0.14**, **up 50%** year-over-year at the midpoint[5](index=5&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) Allegro MicroSystems is a global leader in power and sensing semiconductor solutions, driving innovation in automotive, clean energy, and industrial automation [About Allegro MicroSystems](index=2&type=section&id=About%20Allegro%20MicroSystems) Allegro MicroSystems is a global leader in power and sensing semiconductor solutions, leveraging decades of expertise to drive innovation in automotive, clean energy, and industrial automation sectors with a focus on efficiency, performance, and sustainability - Leverages over three decades of expertise in magnetic sensing and power ICs[8](index=8&type=chunk) - Propels automotive, clean energy, and industrial automation forward with solutions that enhance efficiency, performance, and sustainability[8](index=8&type=chunk) - Reinforces its status as a pioneer in 'automotive grade' technology[8](index=8&type=chunk) [GAAP Financial Results - First Quarter Fiscal Year 2026](index=5&type=section&id=GAAP%20Financial%20Results%20-%20First%20Quarter%20Fiscal%20Year%202026) Q1 FY2026 GAAP results show increased net sales and gross profit, an improved operating loss, and strong operating cash flow, with Automotive leading sales [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 FY2026, Allegro reported increased net sales and gross profit compared to the prior year, but still recorded an operating loss and net loss under GAAP, albeit improved from the previous year Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | June 27, 2025 (in thousands) | June 28, 2024 (in thousands) | YoY Change (in thousands) | | :-------------------- | :------------ | :------------ | :--------- | | Net sales | $203,405 | $166,919 | +$36,486 | | Cost of goods sold | $112,103 | $92,148 | +$19,955 | | Gross profit | $91,302 | $74,771 | +$16,531 | | Total operating expenses | $94,042 | $85,401 | +$8,641 | | Operating loss | $(2,740) | $(10,630) | +$7,890 | | Loss before income taxes | $(9,993) | $(16,573) | +$6,580 | | Net loss | $(13,162) | $(17,613) | +$4,451 | | Diluted EPS | $(0.07) | $(0.09) | +$0.02 | [Supplemental Schedule of Total Net Sales by Market](index=5&type=section&id=Supplemental%20Schedule%20of%20Total%20Net%20Sales%20by%20Market) The Automotive segment continued to be the largest contributor to net sales with solid growth, while the Industrial and Other segment demonstrated significantly higher year-over-year growth Total Net Sales by Market (in thousands) | Market (in thousands) | June 27, 2025 (in thousands) | June 28, 2024 (in thousands) | Amount Change (in thousands) | % Change | | :-------------------- | :------------ | :------------ | :------------ | :------- | | Automotive | $144,264 | $127,394 | $16,870 | 13% | | Industrial and other | $59,141 | $39,525 | $19,616 | 50% | | Total net sales | $203,405 | $166,919 | $36,486 | 22% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2025, the company's total assets slightly decreased from March 28, 2025, primarily due to a reduction in current assets, while long-term debt also saw a notable decrease Condensed Consolidated Balance Sheets (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | Change (in thousands) | | :-------------------------- | :------------ | :------------- | :----- | | Total assets | $1,389,208 | $1,420,961 | $(31,753) | | Total liabilities | $464,951 | $489,861 | $(24,910) | | Total stockholders' equity | $924,257 | $931,100 | $(6,843) | | Cash and cash equivalents | $129,106 | $121,334 | +$7,772 | | Inventories | $173,796 | $183,914 | $(10,118) | | Long-term debt | $310,790 | $344,703 | $(33,913) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased year-over-year, while cash used in investing activities remained stable and cash used in financing activities decreased due to lower debt repayments compared to the prior year Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Three-Month Period Ended June 27, 2025 (in thousands) | Three-Month Period Ended June 28, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :----- | | Net cash provided by operating activities | $61,618 | $34,196 | +$27,422 | | Net cash used in investing activities | $(10,600) | $(10,977) | +$377 | | Net cash used in financing activities | $(44,190) | $(60,378) | +$16,188 | | Repayment of term loan | $(35,000) | $(50,000) | +$15,000 | | Net increase (decrease) in cash and cash equivalents and restricted cash | $8,272 | $(37,984) | +$46,256 | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section details non-GAAP financial measures, including gross profit, operating expenses, EBITDA, and EPS, providing a clearer view of core operational performance [Introduction to Non-GAAP Measures](index=8&type=section&id=Introduction%20to%20Non-GAAP%20Measures) Allegro uses various non-GAAP financial measures to evaluate business performance, identify trends, and make strategic decisions, excluding certain non-cash or infrequent items to provide a clearer view of core operations - Non-GAAP measures are used to evaluate business, measure performance, identify trends, prepare financial forecasts, and make strategic decisions[23](index=23&type=chunk) - These measures exclude certain gains, losses, and charges of a non-cash nature or that occur relatively infrequently and/or are considered unrelated to core operations[23](index=23&type=chunk) - Exclusions include costs related to acquisition and integration, amortization of acquired intangible assets, stock-based compensation, restructuring actions, and related-party activities[24](index=24&type=chunk) [Non-GAAP Gross Profit and Gross Margin](index=8&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Gross%20Margin) Non-GAAP Gross Profit and Gross Margin for Q1 FY2026 were higher than GAAP figures, primarily due to adjustments for purchased intangible amortization and stock-based compensation Non-GAAP Gross Profit and Gross Margin Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------- | :------------ | :------------- | :------------ | | GAAP Gross Profit | $91,302 | $79,879 | $74,771 | | GAAP Gross Margin (% of net sales) | 44.9% | 41.4% | 44.8% | | Total Non-GAAP Adjustments | $6,682 | $8,004 | $6,635 | | Non-GAAP Gross Profit | $97,984 | $87,883 | $81,406 | | Non-GAAP Gross Margin (% of net sales) | 48.2% | 45.6% | 48.8% | [Non-GAAP Operating Expenses](index=9&type=section&id=Non-GAAP%20Operating%20Expenses) Non-GAAP Operating Expenses were significantly lower than GAAP figures, reflecting adjustments for stock-based compensation, restructuring costs, and other non-recurring items across R&D and SG&A Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------------- | :------------ | :------------- | :------------ | | GAAP Operating Expenses | $94,042 | $93,077 | $85,401 | | Non-GAAP Research and Development Expenses | $42,420 | $39,780 | $40,271 | | Non-GAAP Selling, General and Administrative Expenses | $32,892 | $30,718 | $31,170 | | Total Non-GAAP Adjustments | $18,730 | $22,579 | $13,960 | | Non-GAAP Operating Expenses | $75,312 | $70,498 | $71,441 | [Non-GAAP Operating Income and Operating Margin](index=9&type=section&id=Non-GAAP%20Operating%20Income%20and%20Operating%20Margin) While GAAP reported an operating loss, Non-GAAP Operating Income showed a positive trend, significantly improving year-over-year and quarter-over-quarter, reflecting the impact of various adjustments Non-GAAP Operating Income and Operating Margin Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------- | :------------ | :------------- | :------------ | | GAAP Operating Loss | $(2,740) | $(13,198) | $(10,630) | | GAAP Operating Margin (% of net sales) | (1.3)% | (6.8)% | (6.4)% | | Total Non-GAAP Adjustments | $25,412 | $30,583 | $20,595 | | Non-GAAP Operating Income | $22,672 | $17,385 | $9,965 | | Non-GAAP Operating Margin (% of net sales) | 11.1% | 9.0% | 6.0% | [EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin](index=10&type=section&id=EBITDA%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Adjusted EBITDA for Q1 FY2026 showed a substantial increase year-over-year, demonstrating improved operational performance after accounting for non-GAAP adjustments EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------- | :------------ | :------------- | :------------ | | GAAP Net Loss | $(13,162) | $(14,738) | $(17,613) | | EBITDA | $12,348 | $4,138 | $4,768 | | Adjusted EBITDA | $33,368 | $28,451 | $21,949 | | Adjusted EBITDA Margin (% of net sales) | 16.4% | 14.8% | 13.1% | [Non-GAAP Profit before Tax](index=10&type=section&id=Non-GAAP%20Profit%20before%20Tax) Non-GAAP Profit before Tax for Q1 FY2026 was positive, contrasting with the GAAP loss, and showed significant growth compared to prior periods, driven by various non-GAAP adjustments Non-GAAP Profit before Tax Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------- | :------------ | :------------- | :------------ | | GAAP Loss before Income Taxes | $(9,993) | $(18,438) | $(16,573) | | Total Non-GAAP Adjustments | $27,703 | $30,670 | $23,300 | | Non-GAAP Profit before Tax | $17,710 | $12,232 | $6,727 | [Non-GAAP Income Tax Provision and Effective Tax Rate](index=10&type=section&id=Non-GAAP%20Income%20Tax%20Provision%20and%20Effective%20Tax%20Rate) The Non-GAAP effective tax rate for Q1 FY2026 was 9.5%, a significant shift from the GAAP effective tax rate of (31.7)%, primarily due to the tax effect of non-GAAP adjustments Non-GAAP Income Tax Provision and Effective Tax Rate Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------- | :------------ | :------------- | :------------ | | GAAP Income Tax Provision (Benefit) | $3,169 | $(3,700) | $1,040 | | GAAP effective tax rate | (31.7)% | 20.1% | (6.3)% | | Tax effect of adjustments to GAAP results | $(1,483) | $4,126 | $(395) | | Non-GAAP Income Tax Provision | $1,686 | $426 | $645 | | Non-GAAP effective tax rate | 9.5% | 3.5% | 9.6% | [Non-GAAP Net Income and Earnings per Share](index=11&type=section&id=Non-GAAP%20Net%20Income%20and%20Earnings%20per%20Share) Non-GAAP Net Income attributable to Allegro MicroSystems, Inc. and Non-GAAP Diluted EPS showed positive results for Q1 FY2026, a significant improvement from GAAP net loss, reflecting the impact of various non-GAAP adjustments Non-GAAP Net Income and Earnings per Share Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------------- | :------------ | :------------- | :------------ | | GAAP Net Loss Attributable to Allegro MicroSystems, Inc. | $(13,227) | $(14,800) | $(17,675) | | GAAP Diluted Loss per Share | $(0.07) | $(0.08) | $(0.09) | | Total Non-GAAP Adjustments | $27,703 | $30,670 | $23,300 | | Tax effect of adjustments to GAAP results | $1,483 | $(4,126) | $395 | | Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. | $15,959 | $11,744 | $6,020 | | Non-GAAP Diluted Earnings per Share | $0.09 | $0.06 | $0.03 | [Non-GAAP Free Cash Flow](index=11&type=section&id=Non-GAAP%20Free%20Cash%20Flow) Non-GAAP Free Cash Flow for Q1 FY2026 significantly increased year-over-year and quarter-over-quarter, demonstrating strong cash generation after capital expenditures Non-GAAP Free Cash Flow Reconciliation (in thousands) | Metric | June 27, 2025 (in thousands) | March 28, 2025 (in thousands) | June 28, 2024 (in thousands) | | :-------------------------------- | :------------ | :------------- | :------------ | | GAAP Operating Cash Flow | $61,618 | $20,353 | $34,196 | | GAAP Operating Cash Flow (% of net sales) | 30.3% | 10.6% | 20.5% | | Purchases of property, plant and equipment | $(10,600) | $(5,391) | $(10,977) | | Non-GAAP Free Cash Flow | $51,018 | $14,962 | $23,219 | | Non-GAAP Free Cash Flow (% of net sales) | 25.1% | 7.8% | 13.9% | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the earnings webcast, forward-looking statements, non-GAAP measure disclaimers, and investor contact information [Earnings Webcast Information](index=2&type=section&id=Earnings%20Webcast%20Information) Allegro MicroSystems hosted an earnings webcast on July 31, 2025, to discuss its business and financial results, with a recording available on its investor relations website - A webcast was held on Thursday, July 31, 2025, at 8:30 a.m., Eastern Time[6](index=6&type=chunk) - Michael C. Doogue (President and CEO) and Derek P. D'Antilio (EVP and CFO) discussed the results[6](index=6&type=chunk) - The webcast and its recording are available on the Investor Relations section of the Company's website at investors.allegromicro.com[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains a standard legal disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections - This press release contains forward-looking statements covered by safe harbor provisions of the Private Securities Litigation Reform Act of 1995[9](index=9&type=chunk) - These statements involve known and unknown risks, uncertainties, and other important factors that may cause actual results to differ materially from any future results expressed or implied[9](index=9&type=chunk) - Forward-looking statements are based on management's current expectations, beliefs, and assumptions and are subject to various factors, including those identified in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q[11](index=11&type=chunk) [Non-GAAP Financial Measures Disclaimer](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Disclaimer) This disclaimer clarifies that non-GAAP financial measures are supplementary to GAAP, not replacements, and may not be comparable to measures used by other companies due to differing calculation methodologies - Non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP[14](index=14&type=chunk) - There are limitations related to the use of these non-GAAP financial measures, as other companies may calculate them differently, reducing comparability[14](index=14&type=chunk) [Investor Contact](index=11&type=section&id=Investor%20Contact) Contact information for investor relations is provided for inquiries - Investor Contact: Jalene Hoover, VP of Investor Relations & Corporate Communications[36](index=36&type=chunk) - Contact details: +1 (512) 751-6526, jhoover@allegromicro.com[36](index=36&type=chunk)

Sales Increased 22% Year-Over-Year to $203 Million MANCHESTER, N.H., July 31, 2025 (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 first quarter ended June 27, 2025. "We delivered strong first quarter results, with sales of over $203 million, up 22% year-over-year, and led by growth in both e-Mobility and Industria ...

Group 1 - Jabil (JBL) is outperforming the Computer and Technology sector with a year-to-date return of 53.5%, compared to the sector average of 9.8% [4] - Jabil holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 5.5% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Electronics - Manufacturing Services industry, to which Jabil belongs, has seen an average gain of 44.4% year-to-date, further highlighting Jabil's strong performance within its industry [5] Group 2 - Allegro MicroSystems, Inc. (ALGM) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date increase of 65.8% and a consensus EPS estimate increase of 21.8% over the past three months [4][5] - The Electronics - Semiconductors industry, which includes Allegro MicroSystems, has gained 14.9% year-to-date and is ranked 54 among 44 industries [6]

Core Viewpoint - Allegro MicroSystems, Inc. (ALGM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][4][11] Earnings Estimates and Revisions - The Zacks Consensus Estimate for Allegro MicroSystems is projected at $0.53 per share for the fiscal year ending March 2026, showing no year-over-year change [9] - Over the past three months, the Zacks Consensus Estimate for Allegro MicroSystems has increased by 21.8% [9] Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is a key determinant of stock ratings [2][3] - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8] - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10][11] Market Implications - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Allegro MicroSystems' underlying business, which could lead to higher stock prices [6][4] - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7][5]

Investment Rating - The report maintains a "Buy" rating for Analog Devices (ADI), Allegro MicroSystems (ALGM), Microchip Technology (MCHP), and Texas Instruments (TXN), while Onsemi (ON) is rated as "Neutral" [10][11]. Core Insights - The semiconductor industry is experiencing strong near-term demand, but there are signs of demand pull-ins due to tariff-related concerns, which is a key investor worry [2][3]. - Distributor inventory levels have normalized, particularly for Microchip Technology, which has seen a significant reduction in inventory [4][8]. - Pricing across the sector remains generally stable, with ON experiencing notable pricing pressure as it attempts to defend market share [2][4]. Semiconductor Purchaser Survey - The quarterly B2B survey indicates a net increase in demand of +75%, with expectations for future demand remaining strong at +73% [15][17]. - Nearly half of the respondents are exploring alternative supply sources outside the US or China, which is seen as a positive for European analog suppliers [3][18]. - The percentage of respondents indicating their analog semiconductor inventory is above target has significantly decreased, suggesting a healthier demand environment [3][15]. Inventory Financial Reporting Deep Dive - The report highlights that Analog Devices and Microchip Technology have lean inventory levels, positioning them well for an upcycle, while ON continues to face headwinds with high inventory levels [7][8]. - MCHP has successfully executed a turnaround plan, reducing inventory and production significantly [8][10]. - The overall inventory days for major companies like ADI, MCHP, and TXN are being closely monitored, with MCHP showing the largest decline in inventory [4][15]. Pricing Trends - Pricing for true analog semiconductors has remained flat, while power analog pricing has slightly declined, particularly for ON [4][10]. - The report notes that 68% of respondents have reported price increases, with expectations for further increases strengthening to 62% [17][18]. Market Outlook - The semiconductor market is expected to see a recovery, with TXN maintaining elevated inventory levels in anticipation of a sharp upcycle [8][10]. - The report suggests that the channel will likely begin rebuilding inventory, flipping the delta between sell-in and sell-through [8][10]. - Overall, the demand picture is improving, with significant increases in net demand expectations across various sectors, particularly in data centers [32][46].

Core Viewpoint - Allegro MicroSystems, Inc. is set to announce its financial results for the first quarter of fiscal year 2026 on July 31, 2025, with a subsequent conference call to discuss the results and business outlook [1]. Group 1: Financial Results Announcement - The financial results for the first quarter of fiscal year 2026 will be released before market open on July 31, 2025 [1]. - A conference call will be hosted by the CEO and CFO at 8:30 a.m. Eastern Time to discuss the results [1]. Group 2: Conference Call Details - Analysts and investors can join the conference call scheduled for July 31, 2025, at 8:30 a.m. EDT [2]. - Advanced registration is required for dial-in participants to receive a dedicated PIN for accessing the call [2]. - A live and archived audio webcast will be available for at least 90 days on the company's website [2]. Group 3: Company Overview - Allegro MicroSystems leverages over three decades of expertise in magnetic sensing and power ICs to advance automotive, clean energy, and industrial automation [3]. - The company is recognized for its commitment to quality and innovation in "automotive grade" technology [3].

Core Viewpoint - Allegro MicroSystems, Inc. is well-positioned to continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Allegro MicroSystems achieved earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, resulting in a surprise of 20.00% [2]. - In the previous quarter, the company was expected to post earnings of $0.06 per share but delivered $0.07 per share, yielding a surprise of 16.67% [2]. Earnings Estimates and Predictions - Recent estimates for Allegro MicroSystems have been trending higher, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Allegro MicroSystems is +5.88%, suggesting increased analyst optimism regarding its near-term earnings potential [8]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a high probability of beating consensus estimates [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Group 1 - Allegro MicroSystems, Inc. (ALGM) is a notable stock within the Computer and Technology sector, which ranks 5 among 16 sector groups according to the Zacks Sector Rank [2] - The Zacks Rank for ALGM is currently 2 (Buy), indicating a positive analyst sentiment with a 21.8% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, ALGM has achieved a return of approximately 64.4%, significantly outperforming the average gain of 8.2% for the Computer and Technology sector [4] Group 2 - ALGM is part of the Electronics - Semiconductors industry, which consists of 44 companies and currently ranks 143 in the Zacks Industry Rank, with the industry gaining about 14.9% year-to-date [5] - Another stock in the Computer and Technology sector, Jabil (JBL), has also outperformed the sector with a year-to-date increase of 57.1% and holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Electronics - Manufacturing Services industry, to which Jabil belongs, has seen a year-to-date increase of 47.6% and is currently ranked 47 [6]