Allegro MicroSystems (NASDAQ:ALGM) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Allegro MicroSystems (NASDAQ:ALGM) posted its earnings results on Thursday. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.01, FiscalAI reports. Allegro MicroSystems had a negative net margin of 3.60% and a positive return on equity of 2.90%. The company had revenue of $229.21 million for the quarter, compared to analyst estimates of $220.78 million. During the same quarter in the prior year, the business posted $0.07 EPS. The firm’s revenue was up 28.9% compared to the same quarter last year.

Here are the key takeaways from Allegro MicroSystems’ conference call:

• Beat guidance in Q3 with $229 million in sales and non-GAAP EPS of $0.15, while gross margin improved to 49.9% and EPS rose 114% year‑over‑year, highlighting strong operating leverage.
• Bookings and backlog reached multi‑quarter highs with significant design wins across ADAS, xEV, and data center, supporting future content and revenue upside.
• Data center became a record 10% of sales (up 31% sequentially); fan drivers are the current growth engine while higher‑margin current sensors and new SiC isolated gate drivers are ramping and being broadly sampled.
• Q4 guidance calls for $230M–$240M in sales and 49–51% gross margin (midpoint +22% YoY), but management expects automotive to be flat to slightly down (still ~20% below its prior peak), making near‑term mix a key risk.
• Balance sheet and cash generation remain healthy: Q3 free cash flow was $41 million (18% of sales), cash of $163 million, and the term loan was repriced lower to SOFR+175bps, with net leverage near 1x.

Allegro MicroSystems Stock Performance

Shares of NASDAQ:ALGM traded up $0.63 during trading on Thursday, reaching $35.18. The stock had a trading volume of 1,617,558 shares, compared to its average volume of 2,328,407. The company has a quick ratio of 2.48, a current ratio of 3.89 and a debt-to-equity ratio of 0.30. The stock has a fifty day simple moving average of $28.72 and a two-hundred day simple moving average of $29.77. Allegro MicroSystems has a 52 week low of $16.38 and a 52 week high of $39.89. The firm has a market capitalization of $6.51 billion, a price-to-earnings ratio of -220.78 and a beta of 1.61.

Analyst Ratings Changes

ALGM has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Barclays raised their target price on shares of Allegro MicroSystems from $30.00 to $35.00 and gave the company an “overweight” rating in a research note on Friday, October 31st. TD Cowen reaffirmed a “buy” rating on shares of Allegro MicroSystems in a report on Friday, October 31st. Evercore ISI lifted their target price on shares of Allegro MicroSystems from $37.00 to $49.00 and gave the stock an “outperform” rating in a research note on Friday, October 31st. Finally, Bank of America raised their price objective on shares of Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $38.89.

Institutional Investors Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently made changes to their positions in ALGM. Vident Advisory LLC lifted its stake in Allegro MicroSystems by 17.3% in the 2nd quarter. Vident Advisory LLC now owns 11,823 shares of the company’s stock valued at $404,000 after purchasing an additional 1,742 shares during the last quarter. Sei Investments Co. boosted its holdings in Allegro MicroSystems by 2.1% in the 3rd quarter. Sei Investments Co. now owns 88,128 shares of the company’s stock valued at $2,573,000 after purchasing an additional 1,776 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Allegro MicroSystems by 12,315.0% in the 3rd quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock valued at $73,000 after purchasing an additional 2,463 shares in the last quarter. Russell Investments Group Ltd. grew its position in shares of Allegro MicroSystems by 24.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 14,496 shares of the company’s stock worth $423,000 after buying an additional 2,853 shares during the last quarter. Finally, Prudential Financial Inc. grew its position in shares of Allegro MicroSystems by 24.0% in the 2nd quarter. Prudential Financial Inc. now owns 15,684 shares of the company’s stock worth $536,000 after buying an additional 3,040 shares during the period. Institutional investors own 56.45% of the company’s stock.

About Allegro MicroSystems

Allegro MicroSystems, Inc (NASDAQ: ALGM) is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro’s product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.