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Investing.com -- Allegro (WA:ALEP) MicroSystems, Inc. (NASDAQ:ALGM) saw its stock jump 9.1% after the semiconductor company reported better-than-expected fourth quarter results and issued upbeat guidance.
The power and sensing solutions provider posted adjusted earnings per share of $0.06, surpassing analyst estimates of $0.05. Revenue for the quarter came in at $192.82 million, exceeding the consensus forecast of $185.36 million and rising 8% sequentially. However, sales were down 19.9% compared to $240.58 million in the same quarter last year.
Looking ahead, Allegro provided a strong outlook for the first quarter of fiscal 2026. The company expects revenue between $192 million and $202 million, above analyst projections of $190.8 million. At the midpoint, this guidance implies 18% YoY growth. Adjusted EPS is forecast in the range of $0.06 to $0.10, compared to the $0.07 consensus estimate.
"While the environment remains dynamic, we are encouraged by the positive momentum we are seeing across the business and the signals we are seeing from our customers," said Mike Doogue, President and CEO of Allegro.
The company’s automotive segment, which accounted for about 73% of total revenue, saw sales increase 8.3% sequentially to $140.88 million. Industrial and other revenue rose 8.7% quarter-over-quarter to $51.94 million.
Allegro’s gross margin contracted to 41.4% from 51.2% in the year-ago quarter. On an adjusted basis, gross margin came in at 45.6%, down from 53.8% last year.
The strong results and guidance sparked investor optimism, driving shares higher in after-hours trading. Allegro’s focus on strategic growth areas and operating efficiencies appears to be gaining traction as it navigates a challenging semiconductor market environment.
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