Last week, you might have seen that Allegro MicroSystems, Inc. (NASDAQ:ALGM) released its quarterly result to the market. The early response was not positive, with shares down 8.4% to US$21.10 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$187m, statutory losses exploded to US$0.18 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Allegro MicroSystems

Following the recent earnings report, the consensus from eight analysts covering Allegro MicroSystems is for revenues of US$746.1m in 2025. This implies an uncomfortable 12% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 93% to US$0.01. Before this earnings announcement, the analysts had been modelling revenues of US$783.6m and losses of US$0.0064 per share in 2025. So it's pretty clear the analysts have mixed opinions on Allegro MicroSystems after this update; revenues were downgraded and per-share losses expected to increase.

The average price target was broadly unchanged at US$31.21, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Allegro MicroSystems, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$25.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 23% by the end of 2025. This indicates a significant reduction from annual growth of 10% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Allegro MicroSystems is expected to lag the wider industry.