Astera Labs Inc ( ALAB ) shares are trading lower Tuesday on the heels of the company’s fourth-quarter financial results.

Q4 Revenue: $141.1 million, versus estimates of $127.98 million

Q4 EPS: 37 cents, versus estimates of 26 cents

Fourth-quarter revenue was up 179% year-over-year and up 25% quarter-over-quarter. Gross margin came in at 74%. The company ended the quarter with cash and cash equivalents of $79.55 million.

"The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4," said Jitendra Mohan, CEO of Astera Labs ( ALAB ).

"We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering."

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Astera Labs ( ALAB ) sees first-quarter revenue in the range of $151 million to $155 million versus estimates of $134.25 million, according to Benzinga Pro. The company expects adjusted earnings of 28 cents to 29 cents per share in the first quarter.

Following the company’s quarterly results, Needham analyst Quinn Bolton reiterated Astera Labs ( ALAB ) with a Buy rating and a price target of $140.

ALAB Price Action: Astera Labs ( ALAB ) shares were down 5.88% at $97.22 at the time of writing Tuesday morning, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.