Yahoo Finance Earnings Update: Credo Technology Group Holding Ltd (NASDAQ:CRDO) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts
The investors in Credo Technology Group Holding Ltd's (NASDAQ:CRDO) will be rubbing their hands together with glee today, after the share price leapt 31% to US$26.07 in the week following its annual results. Revenues were in line with expectations, at US$193m, while statutory losses ballooned to US$0.18 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Credo Technology Group Holding
Taking into account the latest results, the most recent consensus for Credo Technology Group Holding from ten analysts is for revenues of US$311.9m in 2025. If met, it would imply a sizeable 62% increase on its revenue over the past 12 months. Earnings are expected to improve, with Credo Technology Group Holding forecast to report a statutory profit of US$0.086 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$307.4m and earnings per share (EPS) of US$0.16 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$27.58, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Credo Technology Group Holding analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$22.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Credo Technology Group Holding is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Credo Technology Group Holding's rate of growth is expected to accelerate meaningfully, with the forecast 62% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 35% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Credo Technology Group Holding is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Credo Technology Group Holding. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Credo Technology Group Holding going out to 2027, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Credo Technology Group Holding that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
