NASDAQ$ALGM

Allegro MicroSystems Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Achieved record quarterly revenue and profitability.

Allegro MicroSystems reported a record quarterly revenue of $193.6 million, a 42% increase year-over-year. The company's gross margin and earnings per share also reached record highs, driven by strength in industrial and other end markets.

  • Total net sales of $193.6 million exceeded expectations due to strength in industrial and other end markets.
  • Automotive net sales of $126.0 million were up 41% year-over-year.
  • Record Industrial net sales of $36.3 million were up 68% year-over-year.
  • Earnings per share exceeded expectations, with GAAP diluted EPS increasing to $0.17 in Q2 and non-GAAP diluted EPS increasing by 11% sequentially to $0.20.

Headline financials

Total Revenue

$194M

Previous: $137M+41.7%
EPS (adj)

$0.20

Previous: $1.78-88.8%
Non-GAAP Gross Margin

53.8%

No prior period
GAAP Gross Margin

53.0%

No prior period
Capital Expenditures

-$33.8M

Previous: -$18.1M-86.9%
Free Cash Flow

-$635K

Previous: -$8.51M+92.5%
Net Income

$33.2M

Previous: $9.58M+246.3%
Operating Income

$38.6M

Previous: $12.4M+210.9%
Gross Profit

$103M

Previous: $61.8M+66.0%
Cash & Equivalents

$249M

Previous: $202M+23.1%
Total Assets

$803M

Previous: $780M+3.0%
Stock-Based Comp

$6.2M

Previous: $580K+968.3%

Revenue & EPS history

Allegro MicroSystems · Revenue · Quarterly

$194M

Q2 2022+41.7%vs Q2 2021
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

Allegro MicroSystems · $126M total across 1 segment · Q2 2022

  • Automotive
    $126M+40.8%

Forward guidance

For the third quarter ending December 24, 2021, the Company expects total net sales to be in the range of $180 million to $185 million and non-GAAP earnings per diluted share for the same period are expected to be in the range of $0.18.

Tailwinds

  • Supply recovery is already underway giving us confidence in a return to growth in Q4
  • Confidence in revenue growth of about 28% in fiscal 2022.
  • Based on strong end market positioning
  • Based on business fundamentals
  • Based on design win momentum

Headwinds

  • Temporary COVID-related supply chain disruptions affecting fiscal Q3
  • Anticipated sequential decline reflects the impact of COVID-related shutdowns of third-party factories in Malaysia that occurred recently.
  • Total net sales to be in the range of $180 million to $185 million for the third quarter ending December 24, 2021
  • Non-GAAP gross margin for the third quarter is expected to remain about flat to the new higher levels
  • Non-GAAP earnings per diluted share for the same period are expected to be in the range of $0.18

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.4%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+7.0%

Avg return

30 days after

62%

16 / 26 earnings

Positive

+15.2%

Q3 2023

Best reaction

-16.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-6.7%+14.4%+32.9%
Q3 2026+9.8%+12.6%+5.6%
Q2 2026-1.3%-10.7%-13.2%
Q1 2026-7.2%-7.8%-8.9%
Q4 2025+12.7%+40.7%+54.1%
Q3 2025+5.0%+4.8%-2.4%
Q2 2025-5.0%-7.1%-2.2%
Q1 2025-5.2%-11.4%+2.0%
Q4 2024-8.9%-2.8%+0.1%
Q3 2024+10.5%+14.0%+25.2%
Q2 2024+1.3%+1.6%+5.9%
Q1 2024-16.3%-17.6%-25.9%
Q4 2023+4.8%+3.2%+5.7%
Q3 2023+15.2%+20.7%+28.3%
Q2 2023+11.8%+14.0%+36.5%
Q1 2023+3.9%+6.4%+2.2%
Q4 2022-9.4%-6.6%-3.2%
Q3 2022+0.9%-2.0%-5.1%
Q2 2022+2.0%-4.0%-5.4%
Q1 2021+8.4%+11.6%+20.3%
Q1 2022+8.4%+11.6%+20.3%
Q4 2020+3.1%-0.7%+11.7%
Q4 2021+3.1%-0.7%+11.7%
Q3 2020-4.4%-0.6%-16.2%
Q3 2021-4.4%-0.6%-16.2%
Q2 2021+5.5%+9.4%+17.4%
Q2 2020
Q1 2020

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