Allegro MicroSystems Set to Release Q3 Earnings on January 29
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy ALGM?
Source: seekingalpha
- Earnings Announcement: Allegro MicroSystems is set to announce its Q3 2023 earnings on January 29 before market open, with a consensus EPS estimate of $0.14, reflecting a 100% year-over-year increase, indicating strong profitability.
- Revenue Growth Expectations: The company anticipates Q3 revenues between $215 million and $225 million, representing a 24.2% year-over-year growth, driven by momentum in the automotive and data center sectors.
- Historical Performance: Over the past two years, Allegro has consistently beaten EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing its stable performance and market confidence.
- Estimates Revision Trend: In the last three months, EPS estimates have seen 8 upward revisions and 2 downward, while revenue estimates have experienced 9 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
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Analyst Views on ALGM
Wall Street analysts forecast ALGM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALGM is 39.14 USD with a low forecast of 35.00 USD and a high forecast of 49.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 38.620
Low
35.00
Averages
39.14
High
49.00
Current: 38.620
Low
35.00
Averages
39.14
High
49.00
About ALGM
Allegro MicroSystems, Inc. is engaged in power and sensing semiconductor solutions for motion control and energy-efficient systems. The Company is a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (ICs) and application-specific power ICs, enabling the important emerging technologies in the automotive and industrial markets. Its sensor ICs enable its customers to measure motion, speed, position and current, while its power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light-emitting diode (LED) driver ICs and isolated gate drivers. Its product portfolio includes over 1,500 products across a range of high-performance analog mixed-signal semiconductors. The Company also offers tunneling magnetoresistance (TMR) sensor solutions that provide the highest magnetic sensitivity, lowest power consumption, and the smallest size by comparison to other magnetic technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Design Wins: In the automotive sector, E-Mobility continues to lead growth with multiple key design wins in Q3, particularly in ADAS systems, highlighting the company's strengthening competitive advantage in future markets.
- Innovative Product Launch: The introduction of a new current sensor IC that reduces power-related losses by up to 90% not only enhances power density in xEV and data center applications but also has the potential to drive future sales growth.
- Optimistic Outlook: Management expects Q4 sales to range between $230 million and $240 million, representing a 22% year-over-year increase, while maintaining gross margins between 49% and 51%, demonstrating confidence in future growth.
See More
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- Significant Revenue Growth: The company achieved Q3 revenue of $229.21 million, reflecting a 28.8% year-over-year increase and surpassing market expectations by $8.34 million, showcasing strong demand in its sector.
- Optimistic Outlook: For Q4, Allegro expects net sales between $230 million and $240 million, exceeding the consensus estimate of $227.04 million, which underscores confidence in continued growth.
- Cost Control Challenges: While gross margin is projected between 49% and 51%, operating expenses are expected to rise by approximately 3% to $81 million, primarily due to annual payroll tax resets, which may exert pressure on profitability.
See More
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- Revenue Growth Expectations: The company anticipates Q3 revenues between $215 million and $225 million, representing a 24.2% year-over-year growth, driven by momentum in the automotive and data center sectors.
- Historical Performance: Over the past two years, Allegro has consistently beaten EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing its stable performance and market confidence.
- Estimates Revision Trend: In the last three months, EPS estimates have seen 8 upward revisions and 2 downward, while revenue estimates have experienced 9 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
See More
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- ETF Investment Options: Investors can gain diversified exposure to generative AI-related companies through thematic ETFs like the VanEck Semiconductor ETF, which holds 25 semiconductor firms, with the top five holdings comprising nearly half of the fund's weight, providing quick access to industry leaders.
- Broad Semiconductor Coverage: The State Street SPDR S&P Semiconductor ETF offers a balanced investment in 43 companies, aiming to mitigate risks from large firms through an equal-weight strategy, and has shown a robust 41% increase over the past 12 months, indicating solid return potential.
- Focus on U.S. Market: The iShares Semiconductor ETF concentrates on U.S. semiconductor companies, holding 31 firms, and has risen 56% in the past year, with an expense ratio of 0.34%, making it an attractive option for investors looking to minimize foreign exposure.
See More
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- Positive Corporate Performance: Positive guidance from companies like Microchip Technology has driven a sharp rise in analog semiconductor stocks early in 2026, with Arya expecting fourth-quarter results to meet or slightly exceed expectations, alongside upward revisions for first-quarter guidance.
- Selective Investment Strategy: Given the uncertain macro environment, Arya recommends focusing on analog semiconductor firms with strong free cash flow and attractive valuations, with Analog Devices as a top pick due to its robust performance in AI and aerospace and defense markets.
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See More
