Astera Labs, Inc. (ALAB) experienced a significant 24-hour plunge of 9.96% in extended trading. The semiconductor connectivity firm's stock sold off sharply following the release of its financial results.
The drop occurred despite the company reporting fourth-quarter adjusted earnings per share of $0.58, beating the IBES estimate of $0.51. Revenue reached $270.6 million, also exceeding the $249.5 million consensus estimate and representing a 92% year-over-year increase. For the first quarter, Astera Labs projected revenue between $286 million and $297 million, above analyst expectations.
Market analysts suggest the sell-off may reflect profit-taking after recent gains or concerns about valuation levels following the earnings announcement. Additionally, the company announced a CFO transition, with Mike Tate moving to a strategic advisor role and Desmond Lynch appointed as the new Chief Financial Officer, potentially contributing to investor uncertainty.