Benzinga | Jul 29, 2021 01:54PM EDT

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

* Allegro Microsystems Inc (NASDAQ: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.