RTTNews | Oct 28, 2021 10:44AM EDT

10:44 Thursday, October 28, 2021 (RTTNews.com) - Shares of semiconductor devices maker Allegro MicroSystems, Inc. (ALGM) are rising more than 6% Thursday morning after reporting better-than-expected second-quarter results.

The company's net income had a significant growth in the second quarter at $33.19 million from $9.58 million a year ago on record revenue reported in the quarter.

EPS was $0.17 in the second quarter compared with 0.96 per share last year for the higher share count at the end of the latest second quarter.

Excluding items, earnings of $0.20 per share beat the average estimate of analysts polled by Thomson Reuters at $0.18 per share.

Sales for the quarter increased 42% year-over-year to $193.61 million driven by growth in automotive as well as industrial segments. The consensus estimate was for $186.84 million.

"Despite temporary COVID-related supply chain disruptions affecting fiscal Q3, supply recovery is already underway giving us confidence in a return to growth in Q4 and confidence in revenue growth of about 28% in fiscal 2022. Based on strong end market positioning, business fundamentals, and design win momentum, we believe we are well positioned to deliver low to mid-teens revenue growth and strong gross margins for fiscal 2023," said Ravi Vig, President and CEO of Allegro MicroSystems.

ALGM is at $34.74 currently. It has traded in the range of $16.78- $36.85 in the last 52 weeks.

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