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Credo AI Networking Soars, But Guidance Tempered
3 Jun
Summary
- Credo Technology reported strong fiscal fourth-quarter results.
- Revenue for the quarter reached $437 million, up 157% year-over-year.
- Full-year sales climbed to $1.3 billion with healthy AI networking demand.
Credo Technology (NASDAQ:CRDO) experienced a notable stock increase after announcing strong fiscal fourth-quarter results for the period ending May 2. The company reported adjusted earnings per share of $1.16 and achieved revenues of $437 million for the quarter. This represents a substantial year-over-year revenue growth of 157%.
For the full fiscal year, Credo Technology's sales climbed to $1.3 billion, accompanied by an increase in non-GAAP net income to $662 million. The company's business is centered on providing high-speed connectivity solutions crucial for AI data centers, aiming to enhance efficiency for hyperscale customers.
Looking ahead, Credo Technology provided guidance for the current quarter, projecting revenue between $465 million and $475 million, with a gross margin of 67% to 69%. These figures surpassed consensus estimates, reflecting continued healthy demand for AI networking. However, the stock's previous rally seemed to face some moderation as the outlook was assessed against market expectations.
