Astera Labs late Monday crushed Wall Street's targets for the fourth quarter and guided higher than views for the current period. But ALAB stock wavered in extended trading.
The maker of semiconductor-based connectivity solutions for AI and cloud infrastructure earned an adjusted 37 cents a share on sales of $141.1 million in the December quarter. Analysts polled by FactSet had predicted Astera earnings of 26 cents a share on sales of $127.9 million. On a year-over-year basis, Astera Labs earnings jumped 208% while sales surged 179%.
For the current quarter, Astera Labs expects to earn an adjusted 29 cents a share on sales of $153 million. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 25 cents a share on sales of $133.8 million. In the same period last year, Astera earned an adjusted 10 cents a share on sales of $65.3 million.
"Astera Labs delivered strong Q4 results, with revenue growing 25% vs. the previous quarter, and capped off a stellar 2024 with 242% revenue growth year over year," Chief Executive Jitendra Mohan said in a news release. "The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4."
He added, "We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and back-end AI accelerator scale-up clustering."
ALAB Stock Seesaws After Q4 Report
In after-hours trading on the stock market today, ALAB stock initially tumbled as much as 12.8%. But after bouncing back for a modest gain, the stock slipped again, last down more than 2% at 100.50. During the regular session Monday, ALAB stock rose 2% to close at 103.29.
Santa Clara, Calif.-based Astera Labs went public in March 2024 at an IPO price of 36. It notched a record high of 147.39 on Jan. 6 before pulling back. ALAB stock tumbled below its 50-day moving average line in late January in a sell-off sparked by concerns related China's DeepSeek AI system.
Astera Labs makes connectivity chips for cloud and artificial intelligence data centers. Astera's products are focused on high-speed data transfer and overall system bandwidth expansion in data center computing systems. Its products address critical bottlenecks in AI infrastructure.
ALAB stock is on the IBD Tech Leaders list.
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