Credo Technology (NASDAQ: CRDO) is having a difficult Wednesday. The company reported Q1 2027 results on Tuesday evening, smashing Wall Street's estimates and offering rosy guidance for the next quarter. But the stock was priced for perfection, and Credo gave the bears enough to feast on. The stock closed Wednesday's trading 20% lower.
Let's start with the headline figures. Revenue more than doubled, with a 115% year-over-year jump to $479 million. Adjusted earnings landed at $1.20 per diluted share, up 131% from $0.52 per share in the year-ago period. Credo's active electric cables (AECs) are shipping to five hyperscalers, and the newer optical business is catching up fast. Q2 guidance pointed to roughly $530 million of top-line revenue, up from $268 million in last year's second quarter and well above the current ****** yst consensus at $517 million.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So it's a classic beat-and-raise report, but there's one uncomfortable wrinkle. Credo's business is incredibly concentrated on a handful of customers. The three largest clients accounted for 74% of total revenues.
That might have been alright for a calmer stock, but Credo is a volatile ticker and it headed into this report at sky-high valuation ratios. After today's sharp drop, the beta value is a massive 3.2, and the stock still trades at 59 times trailing earnings.
#signal #revenue #flashing
Let's start with the headline figures. Revenue more than doubled, with a 115% year-over-year jump to $479 million. Adjusted earnings landed at $1.20 per diluted share, up 131% from $0.52 per share in the year-ago period. Credo's active electric cables (AECs) are shipping to five hyperscalers, and the newer optical business is catching up fast. Q2 guidance pointed to roughly $530 million of top-line revenue, up from $268 million in last year's second quarter and well above the current ****** yst consensus at $517 million.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So it's a classic beat-and-raise report, but there's one uncomfortable wrinkle. Credo's business is incredibly concentrated on a handful of customers. The three largest clients accounted for 74% of total revenues.
That might have been alright for a calmer stock, but Credo is a volatile ticker and it headed into this report at sky-high valuation ratios. After today's sharp drop, the beta value is a massive 3.2, and the stock still trades at 59 times trailing earnings.
#signal #revenue #flashing
6 days ago
