CRDO
CRDO Stock Drops Over 12% After-Hours Despite 157% Revenue Growth
Article Summary
HOLD- Credo Technology Group Holding Ltd. (CRDO) reported stronger-than-expected fiscal 2026 results after the close on Monday, with Q4 adjusted EPS of $1.16 beating expectations and revenue surging 157% year-over-year to $437 million, with guidance for Q1 FY27 revenue guidance of $465 million to $475 million also coming in above analyst expectations.
- Credo Technology Group Holding's margins declined quarter-on-quarter, with GAAP operating margins falling from 36.8% to 35.7% and non-GAAP operating margin remaining flat at 49.6%, and shares fell nearly 12% in after-hours trading after ending the regular session lower by 4.21%.
- Retail sentiment on Stocktwits for CRDO turned 'extremely bullish' on Monday from neutral to bullish, with message volume also in extremely high territory, while one user said the stock was already priced for perfection at a high valuation, prompting limited near-term upside and waiting for a better entry point.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 226.1% | 25% | 100.0 ptsExceptional (226.1%) - Hypergrowth |
| EPS Growth Next 5Y ? | 36.6% | 25% | 90.0 ptsExcellent (36.6%) - Strong outlook |
| Target Price Upside ? | 3.5% | 20% | 10.0 ptsNear/At Target (3.5%) - Target: $218.21 vs Current: $226.10 |
| Gross Margin % ? | 67.8% | 15% | 80.0 ptsVery Healthy (67.8%) - High-quality margins |
| Drawdown from 52-Wk High ? | -6.1% | 15% | 20.0 ptsBarely a Dip (-6.1%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CRDO
- Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet, and PCIe applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally.
- It provides HiWire active electrical cables solutions, including HiWire CLOS, SPAN, SHIFT, and SWITCH; optical PAM4 digital signal processors; low-power line card PHY; serializer/deserializer (SerDes) chiplets; and SerDes IP, as well as integrated circuits.
- The company also offers intellectual property solutions consist of SerDes IP licensing.
- In addition, it offers predictive integrity link optimization and telemetry; PCIe retimer solutions; and support and maintenance, engineering, and royalties services.
- The company sells its products to hyperscalers, original equipment manufacturers, original design manufacturers, and optical module manufacturers, as well as into the enterprise and HPC markets.
- Credo Technology Group Holding Ltd was founded in 2008 and is based in Grand Cayman, the Cayman Islands.