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Andres Cardenal: Hello, I am Andres Cardenal, and I am the Group Leader at the The Data Driven Investor.
Today, I’m going to show you how I use Seeking Alpha Premium to look for key financial information among my favorite stocks. In this case, we want to be looking at Astera Labs. We go into financials. We can easily see revenue, gross profit, operating income, and all the important data from the income statement. You can also see the balance sheet and the cash flow statement.
However, what I really like to look at is the evolution in revenue and we can see this number very rapidly in the chart. But more interesting, we can see these numbers in terms of year-over-year growth rates. For example, Astera Labs increased revenue at almost 150% last quarter. This is an impressive growth rate from the company and it’s even an acceleration versus the previous quarter.
I also like to look at profitability metrics and to do that, we can go back to the absolute numbers or we can see the numbers as a percentage of revenue. In the case of Astera Labs, we can observe that the operating profit margin has expanded to almost 21% versus a negative operating profit margin of almost 32% in June of last year. In essence, revenue is growing very rapidly and profit margins are expanding at full speed too.
I also like to look at – I’m surprised to see if the company is beating or missing Wall Street forecasts, we can see the percentage surprise in a chart, and in these columns, we can see the actual data versus the expectations. The table show the earnings per share estimate for different quarters, the actual reported numbers, the surprise in absolute terms, and the surprise in percentage terms.
You can see the same for revenue. Consensus, reported number. Again, the revenue estimate, the actual reported revenue, the surprise in U.S. dollars, and the surprise in percentage terms. It’s very easy to observe that Astera Labs has widely exceeded what we had forecast in past quarters.
Another key data point that I’d like to observe is the trends in earnings revisions. In the case of Astera Labs, the chart shows a big rise in trend in earnings estimates for different quarters, again, the number, the year-over-year growth rate and how this estimate has moved over time. The same is available for revenue.
We can see the chart, we can see the revenue estimates for different quarters, what this means in terms of year-over-year growth rates, and how this estimate has evolved over time. The bottom line is that Astera Labs is growing revenue very rapidly with a massive expansion in profitability. The company has clearly exceeded Wall Street estimates in every quarter, and the forward-looking trends for earnings are also improving.
That is all for now. Remember, you can follow my work at The Data Driven Investor by clicking in the link below. Thank you very much. Bye-bye.
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