Allegro Microsystems Beats On Q1 Earnings, Posts Robust Segment Results, Issues Strong Q2 Guidance

Allegro Microsystems Inc ALGM reported first-quarter FY22 net sales growth of 64% year-on-year to $188.1 million, beating the analyst consensus of $177.6 million.
Net sales from Automotive rose 74.8% Y/Y to $133.5 million, Industrial climbed 48.5% to $30.3 million, and other net sales increased 33.4% to $24.3 million.
The non-GAAP gross margin expanded 30 bps to 52.2%. The non-GAAP operating margin expanded 970 bps to 22.3%.
The non-GAAP EBITDA margin expanded 580 bps to 28.6%.
Non-GAAP EPS of $0.18 beat the analyst consensus of $0.16.
The company held $229.6 million in cash and equivalents. It generated $38.5 million in operating cash flow during the quarter.
Automotive and Industrial businesses reached record revenue levels demonstrating strength across their increasingly diversified business, CEO Ravi Vig stated.
The company said it achieved record revenue for Magnetic Sensors and Power ICs, reflecting increased content in its target applications.
Outlook: Allegro sees Q2 net sales of $185 million - $191 million, above the analyst consensus of $179.3 million.
The adjusted EPS guidance of $0.18 beat the analyst consensus of $0.16.
Price action: ALGM shares traded higher by 7.56% at $27.19 on the last check Thursday.

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