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Hardware & electrical equipment

Credo Technology Group stock surges on 4Q financial results

Credo Technology Group Holding Ltd shares climbed 24% to $16.66 on Thursday after the developer of connectivity solutions and products for the data infrastructure market reported fourth-quarter fiscal 2023 revenue that fell 15% year over year to $32.1 million, but surpassed the $31.3 million FactSet consensus estimate.

Credo's loss for the quarter swelled to $15.9 million, or $0.11 a share, from a loss of $5.4 million, or $0.04 a share, a year earlier, although the company’s adjusted loss of $0.04 a share matched expectations.

“In fiscal 2023, Credo achieved just over $184 million in revenue, a 73% increase compared to fiscal 2022,” Credo Technology Group CEO Bill Brennan said in a statement.

“We see this shift accelerating the demand for energy-efficient connectivity solutions that perform at the highest speeds, which is exactly where Credo excels.”

Credo ended 4Q with cash and a short-term investment balance of $217.8 million as of April 29, 2023.

As well, the San Jose, California-based company guided for 1Q revenue of between $33 million and $35 million, also in line with analyst estimates.

Contact Sean at sean@proactiveinvestors.com

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