Chip designer Allegro MicroSystems (NASDAQ:ALGM) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.

Allegro MicroSystems beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $177.9 million, down 30.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Allegro MicroSystems a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Allegro MicroSystems’s revenue to decline 23.1% year on year to $185 million, a further deceleration from the 10.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.Allegro MicroSystems Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allegro MicroSystems has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.

Looking at Allegro MicroSystems’s peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Qorvo’s revenues decreased 7.6% year on year, beating analysts’ expectations by 2.2%, and Intel reported flat revenue, topping estimates by 2.6%. Qorvo traded up 14.4% following the results while Intel was down 6.7%.

Read our full analysis of Qorvo’s results here and Intel’s results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 22.4% on average over the last month. Allegro MicroSystems’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $27.53 (compared to the current share price of $19).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

View Comments