Credo Technology Q1 revenue more than doubles on AI infrastructure demand; beats estimates
Credo Technology Q1 revenue more than doubles on AI infrastructure demand; beats estimates
Overview
US connectivity solutions provider's fiscal Q1 revenue rose 115% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Company cites AI infrastructure demand and broader portfolio as drivers for growth
Outlook
Credo expects Q2 revenue between $525 mln and $535 mln
Company sees Q2 GAAP gross margin between 62.9% and 64.9%, non-GAAP gross margin 67.0%-69.0%
Credo expects Q2 GAAP operating expenses of $199 mln-$204 mln, non-GAAP $100 mln-$105 mln
Result Drivers
AI INFRASTRUCTURE DEMAND - Co said its connectivity solutions are supporting expanding data-center requirements as AI infrastructure scales
EXPANDED PORTFOLIO - Co said its connectivity portfolio now spans optical and copper solutions across distances from millimeters to kilometers
EARNINGS GROWTH - Non-GAAP net income jumped 140% yr/yr to $236.3 mln as revenue more than doubled
Company press release: ID:nBw4cDfd6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $479.003 mln | $471.77 mln (15 Analysts) |
Q1 Adjusted EPS | Beat | $1.20 | $1.17 (16 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Credo Technology Group Holding Ltd is $290.00, about 28.2% above its August 31 closing price of $226.19
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 44 three months ago
Reuters Recommended Reads
Sept 1 - Dell again lifts forecasts as AI demand powers record results
Sept 1 - Data centre operator Sunevision's FY revenue rises 6% on AI demand
Aug 31 - AI-driven cyber risk is top concern for global financial stability, watchdog says
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)