Allegro Microsystems shares review and analysis
2023.02.02 09:35
Allegro Microsystems shares review and analysis
BudriganAnalytics – (NASDAQ🙂 Allegro Microsystems On the news that the company’s business is doing better than expected, share prices are rising quickly. Sensor ICs and app-specific analog ICs are produced by the semiconductor and integrated circuit manufacturer for the automotive OEM and industrial markets.
The transition to electric, self-driving, and autonomous vehicles as well as the rapid advancement of industrial technology are driving high demand in these markets. This company is in business to provide the technology that is being used by energy and automobile industries to improve operations and efficiency.
According to Allegro MicroSystems President and CEO Vineet Nargolwala, “Momentum in e-Mobility applications, including xEV and ADAS, as well as strong demand across our magnetic sensor and power IC product portfolios, continues to drive growth.” In addition, we had yet another record quarter in our Industrial business, led by continuing expansion in the Clean Energy and Industrial Automation end markets, he added.
Despite its relatively young age, Allegro Microsystems is not a new company. The company has been around since 1990, but it has only recently established itself. A company record was set when the reached $248.8 million. This is up 33.3% from last year, and the product-rich mix, which also drove margin expansion, beat the consensus estimate.
The Automotive market experienced 30% growth, followed by a stronger 59.9% increase in the Industrial market. The fact that gross margin increased to record levels and contributed to solid bottom-line performance is the most exciting news for investors.
The “Other” business, which accounts for approximately 10% of the company’s revenue and includes computing, consumer, and smart home products, experienced a double-digit decline. We also heard this from Advanced Micro Devices (NASDAQ:). and suggests that companies like Intel may be suffering (NASDAQ:), which has already provided sluggish guidance, as well as NVIDIA (NASDAQ:), which is expected to issue a report later this month.
On a GAAP and adjusted basis, margin increased to record levels at the gross and operating levels. As a result, GAAP earnings rose 94% and adjusted earnings rose 84%, both well above the consensus. Strong guidance is accompanied by an EPS of $0.35, which is more than 1000 basis points higher than the Marketbeat.com consensus.
While AMD will benefit from diversification through 2023, Allegro Microsystems is poised for growth thanks to its business-specific business model and low exposure to consumer trends. Not only is the company planning for growth, but it is also going above and beyond the consensus on the top and bottom lines, indicating that there is clear momentum in the business.
Allegro Microsystems’ price is supported by the six analysts with current ratings and may rise. The sentiment is pegged at Buy on the Marketbeat.com tracking page, and it has remained consistent for the past year. The consensus target has smartly rebounded and is now close to record levels, which sets it apart. The price target has been raised even more in the post-release action, indicating that the share price is on the verge of breaking new highs.
That outlook is supported by the charts. Within an uptrend that has already reached an intra-week all-time high, a robust candle rises from support on the weekly chart. This market should continue to rise in the near to mid-term if it can close at the current levels or higher, and it could easily surpass the current high price target of $44.
