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Sep 29, 2023
Allegro MicroSystems Q2 2024 Earnings Report
Allegro MicroSystems reported second quarter results with net sales increased by 16% year-over-year and automotive sales increased by 31% year-over-year.
Key Takeaways
Allegro MicroSystems announced its Q2 2024 financial results, with net sales reaching $276 million, a 16% increase year-over-year. The growth was primarily driven by a 31% increase in Automotive sales. The company also achieved a record non-GAAP diluted EPS of $0.40, representing a 29% increase year-over-year.
Net sales increased by 16% year-over-year to $276 million.
Automotive sales grew by 31% year-over-year, driven by e-Mobility.
E-Mobility sales increased by nearly 60% year-over-year, representing 50% of Automotive sales.
Record non-GAAP diluted EPS of $0.40, a 29% increase year-over-year.
Allegro MicroSystems
Allegro MicroSystems
Allegro MicroSystems Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.com Forward Guidance
For the third quarter ending December 29, 2023, the Company expects net sales to be in the range of $250 million to $260 million. Diluted Earnings per Share are expected to be in the range of $0.27 to $0.31
Positive Outlook
- Gross Margin is expected to be approximately 54%, reflecting lower distribution sales and the initial impact of Crocus
- Operating Expenses are expected to decline 4% sequentially, and are anticipated to be approximately 28% of sales
- Our backlog remains robust.
- Continued strong momentum in design wins (especially in our strategic focus areas of e-Mobility, Clean Energy and Automation)
- Deepening and expanding partnerships with leading OEMs reinforce our conviction in the target model of low double-digit sales growth and above 32% operating margin.
Challenges Ahead
- Our sales forecast reflects normal third quarter seasonality.
- Lingering impacts from the UAW strike.
- Heightened macroeconomic trends.
- Elevated inventory levels in Industrial and Consumer markets.
- Crocus is expected to add $3.5 million to interest expense, and be $0.03 dilutive to EPS.