Allegro Microsystems Q3 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 29 Jan 26
Source: seekingalpha
Allegro Microsystems Inc. shares rose 5.90% as the company reached a 20-day high amid a challenging market environment.
The company reported a Q3 non-GAAP EPS of $0.15, beating expectations by $0.01, and achieved Q3 revenue of $229.21 million, reflecting a 28.8% year-over-year increase. Allegro's optimistic outlook for Q4, expecting net sales between $230 million and $240 million, further underscores its confidence in continued growth despite rising operating expenses.
This strong performance highlights Allegro's robust demand in its sector, positioning the company favorably for future growth even as broader market indices like the Nasdaq-100 and S&P 500 are experiencing declines.
Analyst Views on ALGM
Wall Street analysts forecast ALGM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALGM is 39.14 USD with a low forecast of 35.00 USD and a high forecast of 49.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 34.550
Low
35.00
Averages
39.14
High
49.00
Current: 34.550
Low
35.00
Averages
39.14
High
49.00
About ALGM
Allegro MicroSystems, Inc. is engaged in power and sensing semiconductor solutions for motion control and energy-efficient systems. The Company is a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (ICs) and application-specific power ICs, enabling the important emerging technologies in the automotive and industrial markets. Its sensor ICs enable its customers to measure motion, speed, position and current, while its power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light-emitting diode (LED) driver ICs and isolated gate drivers. Its product portfolio includes over 1,500 products across a range of high-performance analog mixed-signal semiconductors. The Company also offers tunneling magnetoresistance (TMR) sensor solutions that provide the highest magnetic sensitivity, lowest power consumption, and the smallest size by comparison to other magnetic technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
