Astera Labs, Inc. (NASDAQ:ALAB) shares are in the spotlight Tuesday ahead of the company’s fourth-quarter earnings report today after the market closes.
Earnings Expectations, Recent Performance And What To Watch
Astera is expected to report earnings per share of 51 cents and revenue of $249.47 million. The company has beaten both earnings per share and revenue estimates in each of the past four quarters. In its most recent quarter, reported Nov. 4, Astera posted earnings per share of 49 cents, topping the consensus estimate of 39 cents. Revenue came in at $230.57 million, also above the Street's estimate of $206.55 million.
Investors should keep an eye on revenue growth, particularly as it relates to the company’s strategic initiatives in the AI sector. Watch for continued improvements in gross margins, which have been a focus for management, as well as any updates on customer acquisition costs, which could signal the effectiveness of their marketing strategies. Additionally, monitoring the growth in key partnerships or contracts will provide insight into Astera Labs’s competitive positioning in the market.
Technical Analysis
Astera Labs is currently trading 15.1% above its 20-day simple moving average (SMA) and 11.9% above its 100-day SMA, demonstrating longer-term strength. Shares have increased 81.69% over the past 12 months and are currently positioned closer to their 52-week highs than lows, indicating a strong upward trend.
The RSI is at 60.69, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of a neutral RSI and bullish MACD suggests mixed momentum, indicating potential for continued upward movement.
Key Support: $186.00
Key Resistance: $202.00
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Astera Labs, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 2.84) — Trading at a steep premium relative to peers.
- Momentum: Bullish (Score: 86.66) — Stock is outperforming the broader market.
The Verdict: Astera Labs’ Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. However, the low value score suggests that it may be trading at a premium, which could be a concern for value-focused investors.
Astera Stock Climbs Higher
ALAB Price Action: At the time of writing, Astera shares are trading 3.39% higher at $194.04, according to data from Benzinga Pro.
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