Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Mizuho (NYSE:MFG) analysts raised the price target for Credo Technology Group Holding Ltd. (NASDAQ:CRDO) stock to $81 from $70, while maintaining an Outperform rating. The adjustment follows Credo’s recent financial performance and future guidance, which surpassed market expectations. The company, now valued at $10.64 billion, has garnered strong analyst support, with InvestingPro data showing a consensus recommendation of 1.46 (Strong Buy) and 8 analysts recently revising earnings estimates upward.
Credo Technology reported its April quarter results, posting revenues of $170 million and earnings per share of $0.35, both exceeding consensus estimates. The company’s impressive performance is reflected in its 126.34% year-over-year revenue growth. Additionally, the company provided guidance for the July quarter, projecting revenues to increase by 12% quarter-over-quarter to $190 million, significantly above the market’s expectations of $163 million.
Several factors contributed to the optimistic outlook, including the expansion of hyperscaler ramps to two new customers, bringing the total to five. The company also forecasted fiscal year 2026 revenue to exceed $800 million, representing an 85% year-over-year growth, driven by advancements in Optical and Active Electrical Cable (AEC) technologies.
Further supporting the positive sentiment, Credo Technology highlighted its gross margin, which is expected to remain above the long-term range of 63-65% (currently at 64.77% according to InvestingPro data), and the momentum in Optical DSP with a hyperscaler design win for 800G DSP. The company’s market expansion efforts also include the development of 224G AEC for UAL/NVLink Fusion. For deeper insights into Credo’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Credo’s innovative PILOT firmware, aimed at enhancing stability and uptime, is another key factor in the company’s growth strategy. Trading at $62.65, the stock has demonstrated strong momentum, with Mizuho analysts reiterating their Outperform rating and raising their estimates, reflecting confidence in Credo’s ability to capitalize on its market opportunities.
In other recent news, Credo Technology Group Holding Ltd. has been the subject of several analyst updates and corporate changes. Stifel analysts have adjusted their outlook on the company multiple times, recently raising the price target to $80 from $69, while maintaining a Buy rating. The analysts express optimism about Credo Technology’s strategic execution and its leadership in the Active Electrical Cables market. They also anticipate that Credo’s April quarter revenue could surpass their $160 million estimate, driven by growth in multiple Advanced Error Correction programs and Optical Digital Signal Processors.
Additionally, Credo Technology has undergone significant changes in its board of directors, as disclosed in a filing with the U.S. Securities and Exchange Commission. David Zinsner has stepped down from the board, and William J. Brennan, the company’s CEO and President, has been appointed as the new chairman. Fariba Danesh has been elected as a Class II director, bringing extensive experience in the technology sector. These changes come as the company continues to navigate the competitive semiconductor landscape.
Furthermore, Cantor Fitzgerald has highlighted Credo Technology as one of the top-performing companies in the semiconductor sector, despite broader market declines. The firm’s report underscores the robust performance of the Semiconductor Index compared to the S&P 500. These developments reflect Credo Technology’s ongoing efforts to maintain its competitive edge and capitalize on growth opportunities within the industry.
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