Allegro Microsystems, Inc. (ALGM) stock plunged 8.05% in pre-market trading on Thursday, following the release of its fiscal Q3 2025 earnings results. While the company's adjusted earnings per share of $0.07 met analyst expectations, revenues of $177.87 million, though beating forecasts slightly, represented a 30.2% year-over-year decline.
The semiconductor company reported a Q3 operating margin of 10.8% and a gross margin of 45.7%. However, the significant slowdown in sales growth overshadowed the in-line earnings performance, sparking investor concerns about the company's growth trajectory.
Allegro Microsystems' pre-market plunge underscores the market's disappointment with the company's decelerating revenue growth, despite its ability to meet profit expectations. Investors will be closely monitoring the company's strategies to revive sales momentum and return to a sustained growth path.
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