Allegro MicroSystems, a chipmaker that specializes in automotive chips, beat the analyst's expectations on Wednesday for its fourth fiscal quarter. The company also forecast higher sales for the current quarter. ALGM's stock price rose during extended trading.
Manchester, N.H. based company earned adjusted 37 cents per share on sales $269.4 millions in the quarter ending March 31. FactSet polled analysts who expected earnings of 36c per share on $265 million in sales. Allegro's earnings increased 76% year-over-year, while sales grew 35%.
Allegro's March quarter revenue was 67.7% automotive chip sales. The company's revenue was 21.5% industrial chip sales.
Allegro expects adjusted earnings per share of 37 cents on sales of 275 million dollars for the current quarter that ends June 30. This is based on its midpoint guidance. Wall Street was expecting earnings of 33 cents per share based on $257 million sales in the first fiscal quarter.
ALGM Stock Rises After Report
ALGM's stock rose 7.6% in after-hours trades on the stock exchange today to reach 40.70. ALGM's stock closed at 37.83 during the regular session on Wednesday.
In a press release, Chief Executive Vineet Nargolwala stated that "we saw a significant increase in design win momentum for fiscal year 2023. Approximately two-thirds came from strategic growth areas such as e-mobility or industrial."
ALGM is on IBD Tech Leaders List.
Diodes Stock Rises on Earnings Beat
Diodes' (DIOD), a semiconductor stock, also rose following its first-quarter results. The Plano-based Texas company beat expectations for the first quarter, but gave a weak sales outlook for second quarter.
Diodes reported a profit of $1.59 per share in the March quarter. This was down 9% from last year on sales of $467.8 million, which were down 3%.
Diodes rose by 5.2% on Wednesday to 86.86.