Credo Technology Reports Q1 Earnings: In-Line Results, but Shares Fall
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Credo Technology reports in-line Q1 earnings, shares fall 3% By Investing.com
SAN JOSE, Calif. - Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported first-quarter fiscal 2025 results that met expectations, but shares fell 3.6% in after-hours trading. The high-speed connectivity solutions provider posted adjusted earnings per share of $0.04, in line with analyst estimates. Revenue came in at $59.7 million, slightly above the consensus of $59.48 million and up 70% YoY. Credo's product revenue reached a record $57.3 million in Q1, increasing 30% sequentially. CEO Bill Brennan attributed the growth to "customers' AI infrastructure deployments" and expects contributions from the company's "entire suite of innovative, power and cost-efficient, high-speed connectivity solutions" going forward. For the second quarter, Credo forecasts revenue between $65 million and $68 million, above the analyst consensus of $64.91 million. "Our customers' AI infrastructure deployments remain the catalyst for our recent and expected growth," Brennan stated. The company ended the quarter with $398.6 million in cash and short-term investments.
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Credo tumbles after Q1 results fall mostly in line with expectations
For the quarter ended Aug. 3, Credo reported adjusted earnings per share of $0.04 which matched the consensus estimate. Revenue totaled $59.7M, which was slightly more than the consensus of $59.48M. Credo's revenue for the quarter represented a 70% gain year over year. Credo reported product revenue of $57.3M, which represented an increase of 30% quarter over quarter. The San Jose, Calif.-based company provides high-speed connectivity solutions. "Our customers' AI infrastructure deployments remain the catalyst for our recent and expected growth," said Credo CEO Bill Brennan. "Going forward in fiscal 2025 and beyond, we expect contributions from our entire suite of innovative, power and cost-efficient, high-speed connectivity solutions." For the quarter in progress, Credo forecasts revenue ranging from $65M to $68M, with a mid-point of $66.5M. It expects gross margins for the quarter to range from 61.3% to 63.3%, and operating expenses to range from $51.3M to $53.3M. Credo will hold a conference call to discuss the results today at 5 p.m. ET.
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Credo Technology Non-GAAP EPS of $0.04 in-line, revenue of $59.7M beats by $0.22M
Credo Technology press release (NASDAQ:CRDO): Q1 Non-GAAP EPS of $0.04 in-line. Revenue of $59.7M beats by $0.22M. Q2 Revenue is expected to be between $65M and $68M. Q2 GAAP operating expenses are expected to be between $51.3M and $53.3M. More on Credo Technology Credo Technology: AI Revenue Doubling In FY25; Initiate With 'Buy' Credo Technology: Benefits From The Rising Demand For Faster Data Connectivity Credo Tech surges as AI demands higher speeds; TD Cowen upgrades to Buy Seeking Alpha's Quant Rating on Credo Technology Historical earnings data for Credo Technology
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Credo Technology Group Holding Ltd reported Q1 fiscal 2025 earnings that met expectations, but shares fell 3% in after-hours trading. The company's revenue beat estimates slightly, while EPS was in line with forecasts.
Q1 Fiscal 2025 Financial Results
Credo Technology Group Holding Ltd (NASDAQ: CRDO) reported its first quarter fiscal 2025 earnings after the market close on August 24, 2023. The company's results were largely in line with analyst expectations, but the stock price reacted negatively in after-hours trading 1.
The semiconductor solutions provider posted non-GAAP earnings per share (EPS) of $0.04, matching the consensus estimate 3. Revenue for the quarter came in at $59.7 million, slightly beating analyst expectations by $0.22 million 3.
Market Reaction
Despite the in-line results, Credo's shares fell approximately 3% in after-hours trading following the earnings release 1. This reaction suggests that investors may have been hoping for results that would exceed expectations or were possibly concerned about other factors in the report or guidance.
Company Performance and Outlook
Credo Technology, which specializes in providing secure, high-speed connectivity solutions for the data infrastructure market, has been navigating a challenging semiconductor industry environment. The company's ability to meet earnings expectations in this context could be seen as a positive sign of its operational efficiency and market positioning 2.
However, the stock's after-hours decline indicates that some investors may have concerns about the company's growth trajectory or future guidance. It's worth noting that in the fast-paced semiconductor industry, meeting expectations is sometimes not enough to satisfy growth-oriented investors 2.
Industry Context
The semiconductor industry has been facing various challenges, including supply chain disruptions, geopolitical tensions, and fluctuating demand in different market segments. Credo's performance should be viewed within this broader context, as the company's ability to deliver results in line with expectations may be seen as a testament to its resilience 1.
Looking Ahead
As Credo moves further into its fiscal year 2025, investors and analysts will be closely watching for any signs of accelerating growth or market share gains. The company's future performance will likely depend on its ability to capitalize on the increasing demand for high-speed connectivity solutions in data centers and other digital infrastructure applications 2.
While the immediate market reaction to Credo's Q1 results was negative, the long-term implications of these results and the company's future guidance will be crucial in determining investor sentiment moving forward 123.
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