Astera Labs ALAB is scheduled to report second-quarter 2024 results on Aug 6.
The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 11 cents per share, which has remained unchanged in the past 30 days.
The consensus mark for revenues is pegged at $72.56 million.
Astera Lab offers semiconductor-based connectivity solutions customized to leverage the full potential of cloud and AI infrastructure. It had revenues of $116 million in 2023. ALAB started trading on Mar 20, 2024.
Let’s see how things have shaped up for the upcoming announcement.
Astera Labs, Inc. Price and EPS Surprise
Astera Labs, Inc. price-eps-surprise | Astera Labs, Inc. Quote
Factors to Note
Astera Labs’ second-quarter 2024 revenues are likely to have benefited from increasing demand for AI servers and data center infrastructure.
Strong momentum across its three key product families, Aries, Taurus and Leo, is likely to have contributed well.
The company’s robust peripheral component interface express (PCIe) retimers under the Aries product line are expected to have presented significant growth opportunity for ALAB in the PCIe retimer market during the quarter under review.
According to Valuates’ latest report, the global PCIe retimer market is expected to witness a CAGR of 46.8% between 2024 and 2030.
In May, Astera Labs expanded its PCIe 6.x testing capabilities in its Cloud-Scale Interop Lab to enable seamless interoperability between Aries 6 PCIe/CXL Smart DSP Retimers and a broad range of PCIe 6.x hosts and endpoints. Benefits from this expansion are likely to have reflected in the to-be-reported quarter.
In June, Astera Labs also unveiled the industry’s first demonstration of end-to-end PCIe optical connectivity to provide unprecedented reach for larger and disaggregated GPU clusters. The company’s breakthrough technology delivers robust PCIe and CXL connectivity in chip-to-chip, box-to-box, rack-to-rack and now row-to-row topologies throughout the data center. This is expected to have been a tailwind for the company.
ALAB’s expanding portfolio is expected to have aided it in fending off competition from other industry players like Broadcom AVGO, which is also making strong efforts in the PCIe retimer market.
In May, AVGO introduced its latest portfolio of highly scalable, high-performing and low-power 400G PCIe Gen 5.0 Ethernet adapters to revolutionize the data center ecosystem. These latest products offer an enhanced, open and standards-based Ethernet NIC and switching solution to resolve connectivity bottlenecks.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Astera Labs has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Shopify SHOP has an Earnings ESP of +7.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have plunged 21.4% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
MKSI MKSI has an Earnings ESP of +7.28% and sports a Zacks Rank #1 at present.
MKSI’s shares have gained 22.4% year to date. MKSI is set to report second-quarter 2024 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>MKS Instruments, Inc. (MKSI) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Astera Labs, Inc. (ALAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
