Latest news with #MikeDoogue
Yahoo
08-05-2025
- Business
- Yahoo
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
17-04-2025
- Automotive
- Yahoo
Allegro MicroSystems to Announce Fourth Quarter and Fiscal Year 2025 Financial Results
MANCHESTER, N.H., April 17, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (Nasdaq: ALGM) today announced it plans to release financial results for its fourth quarter and fiscal year 2025 prior to the market open on Thursday, May 8, 2025. Following the press release, Mike Doogue, President and Chief Executive Officer, and Derek D'Antilio, Executive Vice President and Chief Financial Officer, will host a conference call at 8:30 a.m. Eastern Time to discuss the Company's results and business outlook. Analysts and investors are invited to join the conference call using the following information: Fourth Quarter and Fiscal Year 2025 Earnings Conference CallDate: Thursday, May 8, 2025Time: 8:30 a.m. EDTLive Webcast Link: Click HereDial-in Participant Registration Link: Click Here Advanced registration is required for dial-in participants. Please complete the linked registration form above to receive a dial-in number and dedicated PIN for accessing the conference call. A live and archived audio webcast of the conference call will also be accessible for at least 90 days on the Company's website at in the Events & Presentations section. About Allegro MicroSystems Allegro 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. For additional information, please visit Contact: Jalene Hoover VP of IR & Corporate CommunicationsPhone: +1 512 751 6526jhoover@ in to access your portfolio
Yahoo
03-03-2025
- Automotive
- Yahoo
Allegro Said to Draw Takeover Interest From ON Semiconductor
(Bloomberg) -- Allegro Microsystems Inc. is drawing takeover interest from larger competitor ON Semiconductor Corp., according to people familiar with the matter. Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays Phoenix-based ON Semi has been working with advisers in recent months to pursue Allegro, the people said, asking not to be identified because the matter is private. It's possible other suitors could emerge for Allegro and the company hasn't indicated whether it would be open to a potential sale, they added. Semiconductor companies interested in bulking up their automotive capabilities could look at buying Allegro, the people said. A representative for ON Semi declined to comment. A representative for Allegro didn't immediately respond to a request for comment. Allegro shares jumped as much as 12% in premarket trading in New York on Monday. The stock was up 2% this year through the end of February, giving the Manchester, New Hampshire-based company a market value of about $4.1 billion. ON Semi has fallen 25% in that time and is valued at $19.8 billion. Last week, Allegro announced it was replacing its chief executive officer of almost three years, Vineet Nargolwala, with longtime executive Mike Doogue. Allegro's biggest shareholder is Japan's Sanken Electric Co., with a stake of about 32%, according to data compiled by Bloomberg. Allegro develops advanced semiconductors, describing itself as a leader in power and sensing solutions for motion control and energy-efficient systems. The products are used in car engines and safety systems, as well as data centers and factories. On Semi also develops power and sensing technologies used in automotive, industrial and cloud-computing sectors. Analysts have warned that automotive chipmakers could face sales pressure as the electric-vehicle market in the US slows under Donald Trump's administration. --With assistance from Ian King. (Updates Allegro's share move in fourth paragraph.) Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience OXO Fought Back Against the Black Spatula Panic. People Defected Anyway ©2025 Bloomberg L.P.
Yahoo
02-03-2025
- Automotive
- Yahoo
Allegro drawing takeover interest from ON Semiconductor, Bloomberg News reports
(Reuters) - Sensor integrated circuits provider Allegro Microsystems is drawing takeover interest from larger competitor ON Semiconductor, Bloomberg News reported on Sunday citing people familiar with the matter. Onsemi has been working with advisers in recent months to pursue Allegro, the Bloomberg report said, adding that its possible other suitors could emerge for Allegro and the company hasn't indicated whether it would be open to a potential sale. Semiconductor companies interested in bulking up their automotive capabilities could look at buying Allegro, the Bloomberg report further said. Allegro has a market valuation of $4.11 billion while Onsemi is valued at $19.83 billion, according to LSEG data. Manchester, New Hampshire-based Allegro on Monday appointed Mike Doogue as its president and CEO, succeeding Vineet Nargolwala. Onsemi on Tuesday said it had initiated a restructuring plan aimed at reducing operational costs, resulting in the layoff of about 2,400 of its employees across all business divisions worldwide in 2025. In February, the Phoenix, Arizona-based Onsemi forecast first-quarter revenue below Wall Street expectations, hit by softening demand for its automotive chips. Sign in to access your portfolio
Reuters
02-03-2025
- Automotive
- Reuters
Allegro drawing takeover interest from ON Semiconductor, Bloomberg News reports
March 2 (Reuters) - Sensor integrated circuits provider Allegro Microsystems (ALGM.O), opens new tab is drawing takeover interest from larger competitor ON Semiconductor (ON.O), opens new tab, Bloomberg News reported on Sunday citing people familiar with the matter. Onsemi has been working with advisers in recent months to pursue Allegro, the Bloomberg report said, adding that its possible other suitors could emerge for Allegro and the company hasn't indicated whether it would be open to a potential sale. Semiconductor companies interested in bulking up their automotive capabilities could look at buying Allegro, the Bloomberg report further said. Allegro has a market valuation of $4.11 billion while Onsemi is valued at $19.83 billion, according to LSEG data. Manchester, New Hampshire-based Allegro on Monday appointed Mike Doogue as its president and CEO, succeeding Vineet Nargolwala. Onsemi on Tuesday said it had initiated a restructuring plan aimed at reducing operational costs, resulting in the layoff of about 2,400 of its employees across all business divisions worldwide in 2025. In February, the Phoenix, Arizona-based Onsemi forecast first-quarter revenue below Wall Street expectations, hit by softening demand for its automotive chips.
