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Investing.com -- Astera Labs , Inc. (NASDAQ:ALAB), a provider of semiconductor-based connectivity solutions for cloud and AI infrastructure, reported first-quarter earnings that beat analyst expectations, but its stock fell 4% as investors appeared unimpressed by the company’s second-quarter guidance.
The company reported adjusted earnings per share of $0.33 for the first quarter, significantly surpassing the analyst estimate of $0.10. Revenue for the quarter came in at $159.4 million, up 144% YoY and 13% sequentially.
Despite the strong quarterly performance, Astera Labs’ stock declined following the earnings release. The company’s second-quarter guidance, while above analyst consensus, may not have met the high expectations set by its robust first-quarter results. Astera Labs forecasts second-quarter adjusted EPS of $0.32-$0.33, compared to the consensus estimate of $0.30, and revenue of $170-175 million, versus the consensus of $159.5 million.
CEO Jitendra Mohan commented on the results, stating, "Astera Labs started the year strong, with Q1 revenue growing 13% sequentially and 144% year-over-year, and exceeding our first quarter guidance for gross margin and earnings per share."
The company reported strong demand for PCIe scale-up and Ethernet scale-out connectivity solutions in custom ASIC platforms. Astera Labs also highlighted its PCIe 6 connectivity portfolio, which is set to ramp up in leading GPU-based rack-scale systems starting in the second quarter.
Astera Labs maintained a robust gross margin of 74.9% in the first quarter, both on a GAAP and non-GAAP basis. The company expects this to remain relatively stable at approximately 74% in the second quarter.
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