Why Allegro MicroSystems (ALGM) Shares Are Trading Higher Today? - Allegro Microsystems (NASDAQ:ALGM)

Allegro MicroSystems, Inc ALGM reported third-quarter net sales growth of 33% year-on-year to $248.79 million Tuesday, beating the consensus estimate of $245.17 million.
Automotive net sales grew 30.1% year-over-year to $170.1 million.
Industrial net sales grew by 59.9% year-over-year to $51 million.
The non-GAAP gross margin expanded by 180 bps to 58% due to higher sales of feature-rich products and favorable foreign exchange.
The non-GAAP operating margin grew by 240 bps to 30.3%.
Allegro's non-GAAP EPS of 35 cents per share beat the consensus of 32 cents per share.
"Our team delivered another quarter of record results. Momentum in e-Mobility applications, including xEV and ADAS, as well as strong demand across our magnetic sensor and power IC product portfolios continues to drive growth," said Vineet Nargolwala, president and CEO of Allegro MicroSystems.
"Sales in our Automotive business increased 30 percent year-over-year, with e-Mobility expanding to a record 43 percent of Automotive sales. We also achieved another record quarter in our Industrial business, led by ongoing growth in Clean Energy and Industrial Automation end markets."
Outlook: Allegro sees first-quarter net sales of $260 million-$270 million (consensus $251.72 million) and non-GAAP EPS of 35-37 cents (consensus 32 cents).
ALGM Price Action: ALGM shares traded higher by 10.05% at $37.89 Tuesday morning.

Allegro MicroSystems Posts 33% Revenue Growth In Q3 Backed By These Segments