Astera Labs stock jumped on Wednesday after the chipmaker handily beat analyst estimates for the second quarter and guided higher for the current period.
The San Jose, Calif.-based company late Tuesday said it earned an adjusted 44 cents a share on sales of $191.9 million in the June quarter. Analysts polled by FactSet had expected earnings of 32 cents a share on sales of $172.5 million. In the year-earlier period, Astera Labs earned an adjusted 13 cents a share on sales of $76.9 million. That translates to year-over-year growth of 238% in earnings and 150% in sales.
For the current quarter, Astera Labs expects to earn an adjusted 39 cents a share on sales of $206.5 million. That's based on the midpoint of its guidance. Wall Street was looking for earnings of 34 cents a share on sales of $180.7 million. In the same quarter last year, it earned an adjusted 23 cents a share on sales of $113.1 million.
Astera Labs makes high-bandwidth, low-latency semiconductor connectivity systems for cloud computing and AI data centers.
"Astera Labs delivered strong financial results in Q2 with sequential revenue growth of 20%, driving meaningful upside to earnings and cash flow from operations," Chief Executive Jitendra Mohan said in a news release.
He added, "Astera Labs 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."
On the stock market today, Astera Labs rocketed 28.7% to close at 174.39. During the regular session Tuesday, ALAB stock slid 1.7% to close at 135.54.
Astera Labs is on three IBD stock lists: IBD 50, IPO Leaders and Tech Leaders.
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