Astera Labs Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Astera Labs ALAB reported second-quarter 2025 non-GAAP earnings of 44 cents per share, surpassing the Zacks Consensus Estimate by 33.33%. The company reported earnings of 13 cents per share.Net revenues surged 149.7% year over year to $192 billion, surpassing the Zacks Consensus Estimate by 11.1%. ALAB shares rose 17% in pre market trading. Year to date, Astera Labs shares climbed 2.4% underperforming the broader Zacks Computer and Technology sector’s 11.8%. Astera Labs, Inc. Price, Consensus and EPS Surprise Astera Labs, Inc. price-consensus-eps-surprise-chart | Astera Labs, Inc. Quote ALAB’s Top-Line DetailsAstera Labs is ramping up production of its PCIe 6 product portfolio for customized rack-scale AI systems. Scorpio Fabric switches won multiple design wins in the reported quarter.The company saw strong demand for its signal conditioning portfolio, driven by PCIe scale-up and Ethernet scale-out connectivity applications in custom ASIC platforms.ALAB’s Operating DetailsThe non-GAAP gross margin was 76%, contracting 200 basis points (bps) year over year.Research and development expenses surged 66.4% year over year to $66.7 million. Sales and marketing expenses decreased 15.7% year over year to $18.6 million. General and administrative expenses decreased 7.2% year over year to $20.5 million.The non-GAAP operating margin was 39.2% compared with 24.4% in the year-ago quarter.ALAB’s Balance Sheet DetailsAs of June 30, 2025, cash and cash equivalents were $1.07 billion compared with $924.7 million as of March 31.ALAB Offers Q3 GuidanceAstera Labs expects third-quarter 2025 revenues between $203 million and $210 million. The Zacks Consensus Estimate for revenues is currently pegged at $181 million, indicating 60.1% growth from the year-ago reported quarter.Non-GAAP gross margin is expected to be roughly 75%. Non-GAAP operating expenses are expected to be between $76 million and $80 million.Earnings are expected between 38 cents and 39 cents per share for the second quarter. The consensus mark for third-quarter 2025 earnings is pegged at 34 cents per share, suggesting 47.8% growth from the year-ago reported quarter.Zacks Rank & Stocks to ConsiderAstera Labs currently carries a Zacks Rank #3 (Hold).MKS Inc. MKSI, DoorDash DASH and Lumentum LITE are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.MKS shares have declined 11.8% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.DoorDash shares have appreciated 52.3% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.Lumentum shares are up 28.8% year to date. LITE is set to report its fourth-quarter fiscal 2025 results on Aug. 12.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MKS Inc. (MKSI): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis Report Astera Labs, Inc. (ALAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks