Allegro MicroSystems Meets Expectations in Q3, But Provides Below-Forecast Guidance for Q4

Shares of Allegro MicroSystems experienced a boost after the company released its fiscal third-quarter results, which met analyst expectations. However, the company's guidance for the fourth quarter fell below what analysts had forecasted.

Despite the positive news, the stock is still down approximately 5% from the beginning of the year and over $10 lower than its trading price a year ago.

In the quarter ended December 29, the semiconductor technology company reported a profit of $33.3 million, or 17 cents per share. This is a decline from the $64.5 million, or 33 cents per share, recorded in the same period last year.

Adjusted earnings, excluding one-time items, stood at 32 cents per share. Analysts surveyed by FactSet had expected earnings of 29 cents per share.

Revenue also saw a modest increase, rising to $255 million from $248.8 million, slightly surpassing analyst projections according to FactSet.

Looking ahead, Allegro MicroSystems provided guidance for the quarter ending March 29. The company expects adjusted earnings to be in the range of 19 cents to 23 cents per share, with revenue projected to be between $230 million and $240 million. Analysts, on the other hand, had anticipated adjusted earnings of 27 cents per share on $255 million in revenue, based on FactSet data.

It remains to be seen how Allegro MicroSystems will perform in the coming months.