Astera Labs Stock Soars on Strong Q3 Results and AI-Driven Growth

Why Astera Labs Skyrocketed Today | The Motley Fool

Astera Labs' recent earnings report looks like a game changer. Astera Labs (ALAB 37.70%) stock posted explosive gains in Tuesday's trading. The company's share price closed out the session up 37.7% and had been up as much as 39.8% earlier in the day's trading. After the market closed yesterday, Astera Labs published its third-quarter results. The company posted sales and earnings for the period that came in significantly better than Wall Street had expected, and it also gave encouraging forward guidance. Astera Labs posted non-GAAP (adjusted) earnings per share of $0.23 on sales of $113.1 million in the third quarter. The performance came in significantly ahead of the average Wall Street estimate, which had called for adjusted per-share earnings of $0.17 on sales of roughly $97.4 million. Sales were up 206% year over year in Q3 and 47% on a sequential quarterly basis. Meanwhile, the business recorded an adjusted gross margin of 77.8% and an adjusted operating income margin of 32.4%. The strong results in the quarter suggest that the company's solutions for artificial intelligence (AI) processors are continuing to gain ground. Astera labs paired its Q3 sales and earnings beat with forward guidance that crushed Wall Street's expectations. For the fourth quarter, Astera Labs is guiding for sales to come in between $126 million and $130 million. If the business were to hit the midpoint of that guidance range, it would mean delivering a massive annual sales increase and sequential quarterly sales growth of roughly 13%. Meanwhile, the company expects to report an adjusted gross margin of roughly 75%. Adjusted earnings per share are projected to come in between $0.25 and $0.26. The results suggest that the company may have secured the design wins connected to Nvidia's next-gen Blackwell processors that investors were hoping for. Alternatively, it's possible that the company is seeing stronger-than-expected demand from hyperscale cloud companies such as Amazon, Microsoft, and Alphabet.

Astera Labs stock soars 19% on robust Q3 results, strong guidance By Investing.com

SANTA CLARA, Calif. - Astera Labs, Inc. (NASDAQ:ALAB), a leader in semiconductor-based connectivity solutions for cloud and AI infrastructure, reported strong third-quarter results and issued upbeat guidance, sending its shares surging 19% in after-hours trading. The company posted adjusted earnings per share of $0.23 on revenue of $113.1 million for the quarter ended September 30, 2024. Revenue jumped 206% YoY and increased 47% sequentially, marking the fifth consecutive quarter of record sales. Astera Labs did not provide a comparison to analyst estimates for the reported quarter. Looking ahead, Astera Labs forecast fourth-quarter revenue between $126 million and $130 million, significantly above the consensus estimate of $108.4 million. The company also projected non-GAAP EPS of $0.25 to $0.26, surpassing analysts' expectations of $0.18. CEO Jitendra Mohan commented, "Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators." The strong results and guidance were driven by expanding market opportunities, particularly with the introduction of new Scorpio Fabric Switches, which are increasing Astera Labs' dollar content in AI platforms. Astera Labs reported a non-GAAP gross margin of 77.8% for the third quarter. The company's non-GAAP operating income came in at $36.6 million, with an operating margin of 32.4%. During the quarter, Astera Labs introduced its new portfolio of Scorpio Smart Fabric Switches, designed specifically for AI infrastructure at cloud scale. The company also joined the Ultra Accelerator Link Consortium as a promoting member on the Board of Directors, positioning itself to contribute to the development of UALink technology for high-speed AI accelerator connectivity.

Astera Labs Stock Is Ripping Higher Today: What's Going On? - Astera Labs (NASDAQ:ALAB)

The company reports quarterly revenue of $113.1 million, beating analyst estimates of $97.4 million. Astera Labs Inc. ALAB shares are trading higher Tuesday after the company posted strong third-quarter financial results. Here's what you need to know. What To Know: Astera Labs reported earnings of 23 cents per share, surpassing estimates of 17 cents per share. The company reported quarterly revenue of $113.1 million, beating analyst estimates of $97.4 million, per Benzinga Pro. Astera's quarterly revenue was up 206% year-over-year. "Astera Labs delivered strong Q3 results, setting our fifth consecutive quarterly revenue record and grew 47% versus the previous quarter," said Jitendra Mohan, CEO of Astera Labs. "Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators." Astera highlighted the recent introduction of its Scorpio Smart Fabric Switches. The switches are designed to improve connectivity and performance in AI systems and offer specific solutions for different needs in AI infrastructure, such as fast connections between GPUs, CPUs and storage devices. "With expanding product portfolio including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multi-year growth trajectories for Astera," Mohan added. Astera Labs expects fourth-quarter revenue to be between $126 million and $130 million. The company sees adjusted earnings per share in the range of 25 cents to 26 cents. See Also: Wall Street Rallies On Election Day, Palantir Skyrockets, Bitcoin Tops $70,000: What's Driving Markets Tuesday? Analyst Changes: A number of analysts raised price targets following the print, which appears to be adding to the upward momentum in shares on Tuesday. Barclays analyst Tom O'Malley maintained an Overweight and raised the price target from $70 to $87. Craig-Hallum analyst Richard Shannon maintained a Buy and raised the price target from $75 to $105. Deutsche Bank analyst Ross Seymore maintained a Buy and raised the price target from $60 to $100. JPMorgan analyst Harlan Sur maintained an Overweight and raised the price target from $70 to $110. Stifel analyst Tore Svanberg maintained a Buy and raised the price target from $80 to $100. Morgan Stanley analyst Joseph Moore maintained an Overweight and raised the price target from $74 to $94. ALAB Price Action: Astera Labs shares were up 37.5% at $95.73 at the time of writing, according to Benzinga Pro. Read Next: Nvidia Takes Short-Lived Lead Over Apple In Valuation Image Via Shutterstock. Market News and Data brought to you by Benzinga APIs

Astera Labs delivers blowout earnings and revenue beat and its stock jumps - SiliconANGLE

Astera Labs delivers blowout earnings and revenue beat and its stock jumps Shares of the artificial intelligence networking chip company Astera Labs Inc. were flying high in extended trading today, rising more than 22% on the back of a solid earnings beat and strong guidance for the current quarter. The chipmaker reported third quarter earnings before certain costs such as stock compensation of 23 cents per share on sales of $113.1 million in the quarter. Revenue rose 206% from a year earlier to $113.1 million. The numbers were solid, with Wall Street analysts calling for earnings of just 17 cents per share on sales of $97.5 million. However, Astera didn't quite make much impact on its bottom line. It reported a net loss of $7.59 million in the quarter, compared to a $7.54 million loss in the year-ago period. AI is all the rage in the technology industry now, so it makes sense that Astera is reaping the rewards. The Santa Clara, California-based company manufactures and sells data center chips that are used by all three big cloud infrastructure providers - Amazon Web Services Inc., Google LLC and Microsoft Corp. The chips are designed to extend the range of data center networking cables, which are used to link together clusters of AI servers, so they can be used to tackle higher-performance workloads. In addition, Astera Labs makes modules that enable processors to quickly transfer data to and from memory to boost their performance. Astera's chief executive officer Jitendra Mohan (pictured) said the company delivered a fifth consecutive quarter revenue record, with revenue up 47% on a sequential basis, compared to the prior quarter. "Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators," he said. "We are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers." Looking ahead, Astera had more good news for investors, saying that it's anticipating fourth quarter earnings of between 25 cents and 26 cents per share, which is well ahead of the Street's target of 18 cents per share. In terms of revenue, Astera is shooting for sales of between $126 million and $130 million, versus the Street's $107.9 million consensus estimate. During the quarter, Astera strengthened its chip portfolio with the launch of its new Scorpio Smart Fabric Switches, the next generation of its silicon for linking AI infrastructure. In addition, the company became a member of the Ultra Accelerator Link Consortium, saying it intends to join the community effort to develop open-source UALink technology for high-speed AI accelerator connectivity.

These Analysts Boost Their Forecasts On Astera Labs After Upbeat Results - Astera Labs (NASDAQ:ALAB)

alab ALAB reported better-than-expected third-quarter EPS and sales on Monday. Astera Labs reported quarterly earnings of 23 cents per share which beat the analyst consensus estimate of 17 cents per share. The company reported quarterly sales of $113.09 million which beat the analyst consensus estimate of $97.44 million. "Astera Labs delivered strong Q3 results, setting our fifth consecutive quarterly revenue record and grew 47% versus the previous quarter," said Jitendra Mohan, Astera Labs' Chief Executive Officer. "Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators. With expanding product portfolio including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multi-year growth trajectories for Astera." Astera Labs said it sees fourth-quarter revenue of $126 million to $130 million and adjusted earnings of 25 cents to 26 cents per share. Astera Labs shares jumped 38.7% to trade at $96.60 on Tuesday. These analysts made changes to their price targets on Astera Labs following earnings announcement. Barclays analyst Tom O'Malley maintained Astera Labs with an Overweight and raised the price target from $70 to $87. Craig-Hallum analyst Richard Shannon maintained the stock with a Buy and raised the price target from $75 to $105. Deutsche Bank analyst Ross Seymore maintained Astera Labs with a Buy and boosted the price target from $60 to $100. JP Morgan analyst Harlan Sur maintained the stock with an Overweight and raised the price target from $70 to $110. Stifel analyst Tore Svanberg maintained Astera Labs with a Buy and boosted the price target from $80 to $100. Morgan Stanley analyst Joseph Moore maintained Astera Labs with an Overweight and raised the price target from $74 to $94. Roth MKM analyst Suji Desilva maintained the stock with a Buy and raised the price target from $80 to $105. Considering buying ALAB stock? Here's what analysts think: Read This Next: This eBay Analyst Turns Bullish; Here Are Top 5 Upgrades For Tuesday Market News and Data brought to you by Benzinga APIs

Astera Labs shares price target increased, holds buy on growth prospects By Investing.com

On Tuesday, Astera Labs (NASDAQ:ALAB) saw its stock price target increased from $75.00 to $105.00 by an analyst at Craig-Hallum, who also reiterated a Buy rating on the stock. The analyst's decision comes after the company's third-quarter earnings call, which addressed concerns about customer and product concentration, as well as the potential for increases in generational content. The stock is expected to see a significant rise today following the positive revelations from the earnings call. Two major announcements were highlighted: the material contributions from High-Speed Digital Connector (HSDC) ASIC accelerator programs, which had not been detailed in the previous call, and the expectation that the Scorpio product line will account for over 10% of calendar year 2025 sales. These factors are anticipated to alleviate investor concerns regarding the company's diversification and growth trajectory. Astera Labs' strong performance is attributed to several factors, including high growth, substantial profit margins, and a solid product-market fit. Additionally, the company's significant involvement in artificial intelligence (AI) contributes to its appeal to investors looking for high-growth opportunities. The analyst's commentary underscores confidence in Astera Labs' future, emphasizing the impact of the HSDC ASIC accelerator programs and the Scorpio line's contribution to sales. The increased price target reflects the analyst's optimistic outlook for the company's growth and market position. Astera Labs' recent performance aligns with several key insights from InvestingPro. The company's impressive revenue growth of 619.03% in Q2 2024 supports the analyst's bullish outlook and increased price target. This growth trajectory is further reinforced by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year. The company's strong market position in AI-related technologies is reflected in its high gross profit margin of 77.33% for the last twelve months as of Q2 2024. An InvestingPro Tip highlights these "impressive gross profit margins," suggesting that Astera Labs has a competitive edge in its market segment. Despite not being profitable over the last twelve months, another InvestingPro Tip reveals that analysts predict the company will be profitable this year. This aligns with the positive sentiment expressed in the earnings call and the analyst's optimistic price target revision. For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Astera Labs, providing a deeper understanding of the company's financial health and market position.