Astera Labs stock soars 19% on robust Q3 results, strong guidance

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.

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Source: Investing.com