Core Viewpoint - The sentiment surrounding Allegro MicroSystems, Inc. (ALGM) is currently poor, particularly in the automotive markets, but there is a belief that the worst may be nearing as 2024 begins [1]. Group 1: Company Overview - Allegro MicroSystems, Inc. is experiencing negative sentiment in the automotive sector, which is impacting its market perception [1]. Group 2: Investment Opportunities - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers and acquisitions, and IPOs, providing coverage of approximately 10 major events each month [1].

Financial Performance - Net sales for the three-month period ended December 26, 2025, were $229.21 million, a 29% increase from $177.87 million for the same period in 2024[17] - Gross profit for the three-month period ended December 26, 2025, was $107.10 million, compared to $81.22 million for the same period in 2024, reflecting a gross margin improvement[17] - Operating income for the three-month period ended December 26, 2025, was $9.57 million, a significant recovery from an operating loss of $0.04 million in the same period last year[17] - Net income attributable to Allegro MicroSystems, Inc. for the three-month period ended December 26, 2025, was $8.30 million, compared to a net loss of $6.86 million for the same period in 2024[17] - Comprehensive income for the three-month period ended December 26, 2025, was $6.76 million, compared to a comprehensive loss of $14.36 million for the same period in 2024[19] - The net income for the period ending December 26, 2025, is $8,362,000, compared to a net loss of $6,799,000 for the previous period[21] - For the nine-month period ended December 26, 2025, net income was $1,783, compared to a net loss of $58,025 for the same period in 2024[26] - The company reported a basic net income per share of $0.04 for the three-month period ended December 26, 2025, compared to a loss of $0.04 per share in the same period last year[17] - The basic net income per share for the three-month period ended December 26, 2025, was $0.04, while the diluted net income per share was also $0.04[66] Assets and Liabilities - Total current assets increased to $515.41 million as of December 26, 2025, from $483.04 million as of March 28, 2025[15] - Total liabilities decreased to $458.30 million as of December 26, 2025, from $489.86 million as of March 28, 2025[15] - Total assets remained stable at $1.42 billion as of December 26, 2025, compared to $1.42 billion as of March 28, 2025[15] - The total equity at December 26, 2025, is $964,414,000, with a common stock amount of $1,852,000[21] - The company's total debt decreased to $287,714,000 as of December 26, 2025, from $346,126,000 on March 28, 2025, a reduction of 17%[59] - The fair value of the company's debt was $286,069,000 as of December 26, 2025, down from $343,275,000 on March 28, 2025, a decrease of 16.7%[50] Cash Flow and Investments - Net cash provided by operating activities for the nine-month period was $127,355, significantly up from $41,560 in the prior year[26] - The company reported a net cash used in investing activities of $21,160, a decrease from $34,245 in the prior year[26] - Cash and cash equivalents at the end of the period were $163,399, compared to $148,962 at the end of the previous year[26] Research and Development - Research and development expenses for the three-month period ended December 26, 2025, were $52.88 million, up from $43.32 million in the same period last year, indicating continued investment in innovation[17] Stock and Equity Transactions - The company issued 28,750,000 shares of common stock, raising $665,850,000 net of underwriting discounts[23] - The Company completed an Equity Offering of 28,750,000 shares at a public offering price of $24.00 per share, resulting in net proceeds of approximately $665.85 million after underwriting discounts[79] - The First Closing under the Share Repurchase Agreement involved repurchasing 28,750,000 shares for an aggregate consideration of $628.26 million, which was the Equity Offering price[80] - The Second Closing under the Share Repurchase Agreement involved repurchasing 10,017,315 shares for aggregate cash consideration of $225.55 million[81] - The Company repurchased common stock amounting to $(821,199,000)[23] Legal and Regulatory Matters - The Company is not aware of any pending or threatened legal proceedings that could have a material adverse effect on its business or financial condition[65] Restructuring and Charges - The restructuring plan initiated in January 2025 incurred costs of $754,000 and $2,328,000 for the three- and nine-month periods ended December 26, 2025, respectively, with cumulative costs reaching $8,088,000[75] - The Company incurred $3,132,000 and $6,278,000 of charges associated with additional restructuring activities during the three- and nine-month periods ended December 26, 2025, respectively[76] Market and Operational Risks - There have been no material changes in the Company's exposures to market risk since March 28, 2025[160]

We recently published 10 Big Names With Explosive Gains.  Allegro MicroSystems Inc. (NASDAQ:ALGM)  was one of the top performers on Thursday. Allegro MicroSystems soared to a two-year high on Thursday after swinging to profitability in the third quarter of the fiscal year and raising its sales outlook for the current quarter. At intra-day trading, the stock jumped to its highest price of $39.89 before trimming gains to finish the session just up by 9.93 percent at $37.98 apiece. Allegro Microsystems A ...

CEO Mike Doogue said the company continues to see content gains and increased adoption of xEV and ADAS systems in cars, which supported automotive performance and design wins during the quarter. D’Antilio noted automotive sales increased 6% sequentially and 28% year-over-year, with e-mobility sales up 46% year-over-year.Profitability metrics discussed on the call included non-GAAP gross margin of 49.9%, operating margin of 15.4%, and adjusted EBITDA of 20.1% of sales. Operating expenses were $79 million, up ...

Allegro MicroSystems (NasdaqGS:ALGM) Q3 2026 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsBlayne Curtis - Managing Director of Equity ResearchChris Caso - Managing DirectorDerek D'Antilio - CFOJalene Hoover - VP of Investor Relations and Corporate CommunicationsJoshua Buchalter - Managing Director and Equity Research of SemiconductorsMike Doogue - President and CEOTimothy Arcuri - Equity ResearchConference Call ParticipantsGary Mobley - Managing Director and Senior Equity AnalystJoe Moore ...

Allegro MicroSystems (NasdaqGS:ALGM) Q3 2026 Earnings call January 29, 2026 08:30 AM ET Company ParticipantsBlayne Curtis - Managing Director of Equity ResearchChris Caso - Managing DirectorDerek D'Antilio - CFOJalene Hoover - VP of Investor Relations and Corporate CommunicationsJoshua Buchalter - Managing Director and Equity Research of SemiconductorsMike Doogue - President and CEOTimothy Arcuri - Equity ResearchConference Call ParticipantsGary Mobley - Managing Director and Senior Equity AnalystJoe Moore ...

Allegro MicroSystems (NasdaqGS:ALGM) Q3 2026 Earnings call January 29, 2026 08:30 AM ET Speaker8Good morning, and welcome to the Allegro MicroSystems third quarter fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, please press star one one on your telephone. You will then hear an automated message advising you your hand is raised. To withdra ...

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3QFY26 Investor Presentation Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of ...

Exhibit 99.1 Allegro MicroSystems Reports Third Quarter 2026 Results Sales Increased 29% Year-Over-Year and 7% Quarter-Over-Quarter to $229 Million Business Outlook For the fourth quarter of fiscal year 2026 ending March 27, 2026, the Company expects total net sales to be in the range of $230 million to $240 million. At the midpoint of this range, it implies growth in net sales of 22% year-over-year. The Company also estimates the following results on a non-GAAP basis: "Earlier this month, we repriced our t ...