Allegro Micro tops Q1 estimates on data center growth
ALGM•Outlook and growth drivers
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Allegro expects Q2 net sales between $265 mln and $275 mln
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Company sees Q2 non-GAAP gross margin between 50.75% and 51.75%
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Allegro expects Q2 non-GAAP diluted EPS between $0.23 and $0.26
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DATA CENTER GROWTH - Record data center sales reached 17% of total sales, driving overall revenue growth
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xEV AND ADAS STRENGTH - Continued strength in xEV and ADAS contributed to sales growth, according to CEO Mike Doogue
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AI, ELECTRIFICATION, AUTOMATION TRENDS - Company said its products are benefiting from megatrends in AI, electrification, and automation across Auto and Industrial markets
Analyst coverage and valuation
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the semiconductors peer group is "buy"
- Wall Street's median 12-month price target for Allegro Microsystems Inc is $55.00, about 30.3% above its July 29 closing price of $42.21
- The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago
