Credo Technology late Wednesday obliterated Wall Street's targets for its fiscal first quarter and with its guidance for the current period. Credo stock jumped in extended trading.
The maker of high-speed connectivity systems for AI data centers earned an adjusted 52 cents a share on sales of $223.1 million in the quarter ended Aug. 2. Analysts polled by FactSet had expected Credo to earn 36 cents a share on sales of $190.6 million. In the year-earlier period, the San Jose, Calif.-based company earned an adjusted 4 cents a share on sales of $59.7 million.
On a year-over-year basis, Credo earnings rocketed 1,200% while sales surged 274%.
For the current quarter, its fiscal Q2, Credo expects revenue of $230 million to $240 million. Analysts had been expecting sales of $201.9 million. In the same quarter last year, it posted sales of $72 million. The midpoint of its guidance points to sales growth of 226% year over year.
In after-hours trading on the stock market today, Credo stock rose 8.2% to 135. During the regular session Wednesday, Credo stock rose a fraction to close at 124.77.
Credo stock notched a regular-session record high of 134.35 on Aug. 28.
"The company's growth has been driven by deep, strategic partnerships with hyperscalers and key customers," Chief Executive Bill Brennan said in a news release.
He added, "Given increasing market demand for reliable and power-efficient connectivity solutions, we expect continued revenue growth and diversification in terms of customers, protocols and applications."
Credo Stock Has Top Composite Rating
Credo's products include integrated circuits, active electrical cables (AEC), and serializer/deserializer (SerDes) chiplets. It also licenses its SerDes intellectual property.
Credo has a strong leadership position in active electrical cables for artificial intelligence servers. Its three biggest customers are Amazon, Microsoft and xAI.
Credo stock is on two IBD lists: Big Cap 20 and Tech Leaders. It has a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup.
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