Demo
ALGM Nasdaq· Allegro MicroSystems,
FundamentalsNews digest Peer analysis
Login
ALGM Nasdaq· Allegro MicroSystems,
Earnings report Q4 2023

ALGM Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

ALGM's total net sales for the nine-month period ended December 29, 2023, increased to $808.79 million from $704.21 million in the same period last year. This growth was primarily driven by higher shipments of e-Mobility products, safety comfort and convenience applications, and broad-based and other industrial applications, including clean energy and automation. However, there was a decline in net sales from data center applications and consumer and smart home products.

Strengths

ALGM demonstrated strong revenue growth in the latest quarter, with total net sales increasing by 15% compared to the same period last year. The company's focus on e-Mobility products and industrial applications, which are experiencing increased demand, has contributed to this growth. ALGM's management highlighted the success of their safety comfort and convenience applications, as well as their efforts in the clean energy and automation sectors. These factors have positively impacted the company's financial performance.

Challenges

Despite the overall revenue growth, ALGM experienced a decline in net sales from data center applications and consumer and smart home products. This decline may be attributed to various factors, such as market competition or shifts in consumer preferences. ALGM should closely monitor these segments and consider strategies to address the challenges they present.

Noteworthy

ALGM's net sales to a related party increased significantly in the nine-month period ended December 29, 2023, reaching $6.16 million compared to $131.85 million in the same period last year. This change may indicate a shift in the company's business relationships or a change in the structure of their operations. Further information regarding these related party net sales can be found in the company's unaudited condensed consolidated financial statements.

Summary

ALGM reported strong revenue growth in the latest quarter, primarily driven by higher shipments of e-Mobility products and industrial applications. The company's focus on safety comfort and convenience applications, as well as their efforts in clean energy and automation, have contributed to this growth. However, ALGM faced challenges with declining net sales from data center applications and consumer and smart home products. The significant increase in net sales to a related party is noteworthy and may indicate changes in the company's business relationships. Overall, ALGM's financial performance demonstrates positive momentum, but they should address the challenges in certain segments to sustain their growth.

Source documents

Form 10-Q  filed on Feb 06, 2024
15 pages scanned

Reference data

Company financials Q4 revenue 255M
Analyst estimates Q4 EPS missed by -13.51%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.