Allegro MicroSystems Q4 2024: Earnings Beat, Revenue Decline

Highlights:

* Revenue: $177.9 million (beat analyst expectations of $175.4 million)
* EPS (GAAP): -$0.04 (in line with analyst estimates)
* Adjusted EBITDA: $30.32 million (in line with estimates)
* Revenue guidance for Q1 2025: $185 million (mostly in line with expectations)
* EPS (GAAP) guidance for Q1 2025: $0.05 (beat estimates by 346%)

Overview:

Allegro MicroSystems (ALGM) designs power management chips and distance sensors for electric vehicles and data centers.

Market Drivers:

* Demand for semiconductors driven by 5G, Internet of Things, autonomous driving, and AI/ML.

Sales Growth:

* 5% annualized revenue growth over the past five years, below industry average.
* Revenue declined by 30.2% year-over-year in Q4 2024.
* 23.1% year-over-year decline in sales projected for Q1 2025.
* Analysts expect 4.1% revenue growth over the next 12 months.

Inventory Days Outstanding (DIO):

* DIO at 182, 64 days above the five-year average.
* Suggests higher inventory levels and potentially weak demand.

Key Takeaways:

* ALGM beat operating income and EPS estimates but guided for in-line revenue in Q1.
* Inventory levels increased significantly.
* Stock price declined 5.5% after earnings release.

Full Research Report:

For a comprehensive analysis of Allegro MicroSystems' fundamentals and valuation, access our full research report here (free access).