Will Allegro MicroSystems, Inc. (ALGM) Beat Estimates Again in Its Next Earnings Report?

Core Viewpoint - Allegro MicroSystems, Inc. has a strong track record of exceeding earnings estimates and is well-positioned for future earnings surprises, particularly with its upcoming report expected on February 1, 2024 [1][3]. Earnings Performance - The company has achieved an average surprise of 6.76% over the past two quarters, with the latest earnings reported at $0.40 per share against an estimate of $0.37, resulting in a surprise of 8.11% [1]. - In the previous quarter, Allegro MicroSystems reported earnings of $0.39 per share, surpassing the expected $0.37, which led to a surprise of 5.41% [1]. Earnings Estimates and Predictions - Estimates for Allegro MicroSystems have been trending higher, influenced by its history of earnings surprises [2]. - The company currently has a positive Zacks Earnings ESP of +1.16%, indicating that analysts are optimistic about its earnings prospects [3]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [2][3]. Importance of Earnings ESP - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [4]. - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [4].