Astera Labs (NASDAQ:ALAB) stock is soaring on Tuesday after the company reported record quarterly revenue after market close.
Check out ALAB price action here.
What Happened: Astera Labs reported second-quarter revenue of $191.9 million, up 150% year-over-year and up 20% quarter-over-quarter. The revenue total beat a Street consensus estimate of $172.54 million according to data from Benzinga Pro.
The company's revenue was a quarterly record, as was operating cash flow generation of $135.4 million.
Astera Labs reported adjusted earnings per share of 44 cents, beating a Street consensus of 32 cents per share.
"Astera Labs delivered strong financial results in Q2 with sequential revenue growth of 20 percent, driving meaningful upside to earnings and cash flow from operations," Astera CEO Jitendra Mohan said.
Mohan said the company executed the next step in its growth journey in the second quarter by ramping up PCIe 6 connectivity product portfolio. The products are now in volume production for customized rack-scale AI systems.
Astera added several design wins for its Scorpio Fabric Switches in the quarter.
"Astera is at the forefront of an AI infrastructure transformation, and we are accelerating our investments to realize our vision of rack-scale connectivity in next-generation AI systems."
In the quarter, the company expanded its collaboration with NVIDIA Corp (NASDAQ:NVDA) to advance the NVLink Fusion ecosystem. Astera Labs is providing NVLink connectivity solutions.
What's Next: Astera Labs is guiding for third quarter revenue to be in a range of $203 million to $210 million.
Analysts expect the company's third-quarter revenue to be $180.73 million, according to data from Benzinga Pro.
The company expects adjusted earnings per share in a range of 38 cents to 39 cents for the third quarter. Analysts estimate earnings to be 34 cents per share.
ALAB Price Action: Astera Labs stock is up 10.89% to $150.30 in after-hours trading Tuesday versus a 52-week trading range of $36.22 to $147.39. The stock could open at new 52-week highs Wednesday if the gains hold overnight.
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Photo: Piotr Swat via Shutterstock
