Latest news with #AllegroMicroSystems
Yahoo
2 days ago
- Business
- Yahoo
Broadcom Earnings: What To Look For From AVGO
Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be announcing earnings results tomorrow after the bell. Here's what to look for. Broadcom beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $14.92 billion, up 24.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts' EPS estimates but an increase in its inventory levels. Is Broadcom a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Broadcom's revenue to grow 20.3% year on year to $15.02 billion, slowing from the 43% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Broadcom has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average. Looking at Broadcom's peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Allegro MicroSystems's revenues decreased 19.9% year on year, beating analysts' expectations by 4.3%, and Qorvo reported a revenue decline of 7.6%, topping estimates by 2.2%. Allegro MicroSystems traded up 19.5% following the results while Qorvo was also up 14.4%. Read our full analysis of Allegro MicroSystems's results here and Qorvo's results here. There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 13.4% on average over the last month. Broadcom is up 28.4% during the same time and is heading into earnings with an average analyst price target of $250.52 (compared to the current share price of $256.94). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
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3 High-Flying Stocks in Hot Water
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can't match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts. Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. That said, here are three high-flying stocks where the price is not right and some other investments you should look into instead. Forward P/E Ratio: 51.2x The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers. Why Do We Steer Clear of ALGM? Annual sales declines of 13.7% for the past two years show its products and services struggled to connect with the market during this cycle Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term Free cash flow margin dropped by 10.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up Allegro MicroSystems is trading at $25.05 per share, or 51.2x forward P/E. To fully understand why you should be careful with ALGM, check out our full research report (it's free). Forward P/E Ratio: 40.1x Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions. Why Are We Cautious About AVAV? Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 7.5 percentage points Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 24.6 percentage points Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions AeroVironment's stock price of $181.01 implies a valuation ratio of 40.1x forward P/E. Check out our free in-depth research report to learn more about why AVAV doesn't pass our bar. Forward P/E Ratio: 41.1x Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards. Why Do We Think Twice About ULS? 4.3% annual revenue growth over the last three years was slower than its business services peers At $71.82 per share, UL Solutions trades at 41.1x forward P/E. Read our free research report to see why you should think twice about including ULS in your portfolio, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
15-05-2025
- Business
- Yahoo
Allegro MicroSystems to Present at TD Cowen's 53rd Annual Technology, Media & Telecom Conference on Thursday, May 29, 2025
MANCHESTER, N.H., May 15, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. ('Allegro') (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced that the company will present at TD Cowen's 53rd Annual Technology, Media & Telecom Conference on Thursday, May 29, 2025 at the InterContinental New York Barclay in New York, NY. Derek D'Antilio, EVP and Chief Financial Officer, is scheduled to participate in a fireside chat at 1:15 PM ET. A live and archived webcast of the fireside chat will be available on the Investor Relations page of the company's website at About Allegro MicroSystemsAllegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs, to propel automotive, clean energy and industrial automation forward with solutions that enhance efficiency, performance and sustainability. Allegro's commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive grade" technology and a partner in our customers' success. Contact: Jalene HooverVP of IR & Corporate CommunicationsPhone: +1 512 751 6526jhoover@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
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Allegro MicroSystems (NASDAQ:ALGM) Reports Bullish Q1, Stock Soars
Chip designer Allegro MicroSystems (NASDAQ:ALGM) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 19.9% year on year to $192.8 million. Guidance for next quarter's revenue was optimistic at $197 million at the midpoint, 2.9% above analysts' estimates. Its non-GAAP profit of $0.06 per share was in line with analysts' consensus estimates. Is now the time to buy Allegro MicroSystems? Find out in our full research report. Revenue: $192.8 million vs analyst estimates of $185 million (19.9% year-on-year decline, 4.3% beat) Adjusted EPS: $0.06 vs analyst estimates of $0.05 (in line) Adjusted EBITDA: $28.45 million vs analyst estimates of $27.78 million (14.8% margin, 2.4% beat) Revenue Guidance for Q2 CY2025 is $197 million at the midpoint, above analyst estimates of $191.4 million Adjusted EPS guidance for Q2 CY2025 is $0.08 at the midpoint, above analyst estimates of $0.08 Operating Margin: -6.8%, down from 6.6% in the same quarter last year Free Cash Flow was $14.96 million, up from -$1.51 million in the same quarter last year Inventory Days Outstanding: 148, down from 182 in the previous quarter Market Capitalization: $3.44 billion 'During the fourth quarter, we delivered on our commitments with sales of $193 million, up 8% sequentially, and non-GAAP EPS of $0.06,' said Mike Doogue, President and CEO of Allegro. The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Allegro MicroSystems grew its sales at a sluggish 2.6% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Allegro MicroSystems's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 13.7% annually. This quarter, Allegro MicroSystems's revenue fell by 19.9% year on year to $192.8 million but beat Wall Street's estimates by 4.3%. Despite the beat, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 18% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.9% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and indicates its newer products and services will spur better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Allegro MicroSystems's DIO came in at 148, which is 28 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past. We were impressed by Allegro MicroSystems's strong improvement in inventory levels. We were also excited its EPS outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.9% to $19.80 immediately following the results. Allegro MicroSystems put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Allegro MicroSystems (ALGM) Reports Q1: Everything You Need To Know Ahead Of Earnings
Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be announcing earnings results tomorrow before the bell. Here's what you need to know. Allegro MicroSystems beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $177.9 million, down 30.2% year on year. It was a strong quarter for the company, with a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Is Allegro MicroSystems a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Allegro MicroSystems's revenue to decline 23.1% year on year to $185 million, a further deceleration from the 10.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share. Allegro MicroSystems Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allegro MicroSystems has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average. Looking at Allegro MicroSystems's peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Qorvo's revenues decreased 7.6% year on year, beating analysts' expectations by 2.2%, and Intel reported flat revenue, topping estimates by 2.6%. Qorvo traded up 14.4% following the results while Intel was down 6.7%. Read our full analysis of Qorvo's results here and Intel's results here. There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 22.4% on average over the last month. Allegro MicroSystems's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $27.53 (compared to the current share price of $19). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
