NASDAQ$ALGM

Allegro MicroSystems Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Allegro MicroSystems reported second quarter results with net sales increased by 16% year-over-year and automotive sales increased by 31% year-over-year.

Allegro MicroSystems announced its Q2 2024 financial results, with net sales reaching $276 million, a 16% increase year-over-year. The growth was primarily driven by a 31% increase in Automotive sales. The company also achieved a record non-GAAP diluted EPS of $0.40, representing a 29% increase year-over-year.

  • Net sales increased by 16% year-over-year to $276 million.
  • Automotive sales grew by 31% year-over-year, driven by e-Mobility.
  • E-Mobility sales increased by nearly 60% year-over-year, representing 50% of Automotive sales.
  • Record non-GAAP diluted EPS of $0.40, a 29% increase year-over-year.

Headline financials

Total Revenue

$276M

Previous: $238M+15.9%
EPS (adj)

$0.40

Previous: $0.31+29.0%
Capital Expenditures

-$76.1M

Previous: -$35.2M-116.1%
Free Cash Flow

-$10.5M

Previous: $15.4M-168.1%
Net Income

$65.6M

Previous: $50.6M+29.6%
Operating Income

$72.9M

Previous: $59.8M+21.9%
Gross Profit

$160M

Previous: $132M+20.8%
Cash & Equivalents

$370M

Previous: $294M+26.0%
Total Assets

$1.28B

Previous: $980M+31.1%
Stock-Based Comp

$10.9M

Previous: $8.2M+32.6%

Revenue & EPS history

Allegro MicroSystems · Revenue · Quarterly

$276M

Q2 2024+15.9%vs Q2 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Allegro MicroSystems · $206M total across 1 segment · Q2 2024

  • Automotive
    $206M+30.8%

Forward guidance

For the third quarter ending December 29, 2023, the Company expects net sales to be in the range of $250 million to $260 million. Diluted Earnings per Share are expected to be in the range of $0.27 to $0.31

Tailwinds

  • Gross Margin is expected to be approximately 54%, reflecting lower distribution sales and the initial impact of Crocus
  • Operating Expenses are expected to decline 4% sequentially, and are anticipated to be approximately 28% of sales
  • Our backlog remains robust.
  • Continued strong momentum in design wins (especially in our strategic focus areas of e-Mobility, Clean Energy and Automation)
  • Deepening and expanding partnerships with leading OEMs reinforce our conviction in the target model of low double-digit sales growth and above 32% operating margin.

Headwinds

  • Our sales forecast reflects normal third quarter seasonality.
  • Lingering impacts from the UAW strike.
  • Heightened macroeconomic trends.
  • Elevated inventory levels in Industrial and Consumer markets.
  • Crocus is expected to add $3.5 million to interest expense, and be $0.03 dilutive to EPS.

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 2024

Historical avgQ2 2024

+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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