Astera Labs Q3 revenue jumps 154% on Scorpio switch ramp, design wins
Overview
US semiconductor connectivity firm's fiscal Q3 revenue rose 154% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q3 beat consensus
Growth driven by high-volume Scorpio fabric switch production
Outlook
Astera Labs expects Q4 revenue between $730 mln and $750 mln
Company projects Q4 GAAP diluted EPS of $1.13 to $1.17
Astera Labs forecasts Q4 GAAP gross margin of about 72%
Result Drivers
SCORPIO SWITCH RAMP - Co said revenue growth was led by high-volume production of Scorpio X-Series fabric switches, which became its largest product family
NEW DESIGN WINS - Co said accelerated design activity and wins across multiple customers and applications contributed to results
PORTFOLIO EXPANSION - Co cited expansion of its product portfolio, including Aries 7, Leo 2 and Leo X-Series, and Orion rack-scale reference architecture, as supporting growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $584.90 mln | $550.80 mln (18 Analysts) |
Q3 Adjusted EPS | Beat | $1.32 | $1.19 (19 Analysts) |
Q3 Adjusted Net Income | Beat | $243.40 mln | $215.03 mln (17 Analysts) |
Q3 Net Income | $182.90 mln | ||
Q3 Gross Margin | 72.30% | ||
Q3 Adjusted Operating Income | Beat | $261.60 mln | $232.57 mln (17 Analysts) |
Q3 Adjusted Gross Margin | 72.40% | ||
Q3 Operating Income | $179.10 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Astera Labs, Inc. is $425.00, about 85% above its November 2 closing price of $229.67
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 79 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)