Exploring Credo Technology Group's Earnings Expectations

Credo Technology Group CRDO is preparing to release its quarterly earnings on Monday, 2025-06-02. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Credo Technology Group to report an earnings per share (EPS) of $0.27.

The market awaits Credo Technology Group's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.07, leading to a 13.97% drop in the share price on the subsequent day.

Here's a look at Credo Technology Group's past performance and the resulting price change:

Performance of Credo Technology Group Shares

Shares of Credo Technology Group were trading at $63.83 as of May 29. Over the last 52-week period, shares are up 143.93%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Credo Technology Group

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Credo Technology Group.

Analysts have given Credo Technology Group a total of 7 ratings, with the consensus rating being Buy. The average one-year price target is $70.86, indicating a potential 11.01% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Skyworks Solutions, MACOM Technology Solns and Qorvo, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Skyworks Solutions, with an average 1-year price target of $60.0, suggesting a potential 6.0% downside.
• Analysts currently favor an Buy trajectory for MACOM Technology Solns, with an average 1-year price target of $135.0, suggesting a potential 111.5% upside.
• Analysts currently favor an Neutral trajectory for Qorvo, with an average 1-year price target of $78.0, suggesting a potential 22.2% upside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for Skyworks Solutions, MACOM Technology Solns and Qorvo are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Credo Technology Group ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity. Overall, Credo Technology Group stands out for its strong revenue growth and gross profit performance compared to its peers.

Delving into Credo Technology Group's Background

Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. It has a geographic presence in Hong Kong, the United States, Mainland China, Taiwan, and the Rest of the World.

Credo Technology Group: Delving into Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Credo Technology Group's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 154.44%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Credo Technology Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.75%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Credo Technology Group's ROE stands out, surpassing industry averages. With an impressive ROE of 4.95%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Credo Technology Group's ROA excels beyond industry benchmarks, reaching 4.32%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.03, Credo Technology Group adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Credo Technology Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.