Shares of Allegro MicroSystems, Inc. (ALGM) soared over 5% in the pre-market session on Thursday, following the company's impressive third-quarter fiscal 2025 results and upbeat guidance.

The semiconductor company reported a non-GAAP earnings per share of $0.07, in line with analysts' estimates, but down from $0.32 in the same quarter last year. However, the company's revenue of $177.87 million beat Wall Street expectations of $176.28 million, despite a 30.2% year-over-year decline.

The robust performance was driven by strong demand for Allegro's products, particularly in the automotive and industrial sectors, as well as the company's strategic inventory management efforts.

Looking ahead, Allegro provided an optimistic outlook for the fourth quarter, with projected revenue between $180 million and $190 million, and non-GAAP earnings per share in the range of $0.03 to $0.07. The company's management expressed confidence in its ability to navigate the challenging macroeconomic environment, citing its strong product portfolio and expanding customer base.

Analysts praised Allegro's execution and cost-control measures, with several firms reiterating their "buy" or "overweight" ratings on the stock. The company's focus on innovation, strategic partnerships, and operational efficiency is expected to support its long-term growth prospects.