Credo Technology Intrinsic Stock Value – CREDO TECHNOLOGY Reports Q1 Earnings for FY2024, Ending July 31, 2023
August 27, 2023
🌥️Earnings Overview
On August 24 2023, CREDO TECHNOLOGY ($NASDAQ:CRDO) released their Fiscal Year 2024 Q1 earnings report for the period ending July 31 2023. Total revenue was USD 35.1 million, a 24.5% decrease from the same quarter in FY2023. Net income was reported at USD -11.7 million, compared to a net income of -0.1 million in the prior year quarter.
Stock Price
CREDO TECHNOLOGY reported its earnings for the first quarter of financial year 2024 on Thursday. The company opened its stock at $16.3 and closed at $14.9, a drop of 7.4% from the prior closing price of $16.1. This decrease in stock price indicates that investors have shown little confidence in the company’s financial performance, as CREDO TECHNOLOGY has not been able to demonstrate a positive financial outlook for the coming year. CREDO TECHNOLOGY’s reports have illustrated the negative effects of higher operating costs and a decrease in revenue and new customers.
The company is now facing increased pressure from investors to restructure its operations and find a way to turn around its current financial situation. As of now, it remains to be seen how CREDO TECHNOLOGY will respond to these challenges in order to create a more positive outlook for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Credo Technology. More…
| Total Revenues | Net Income | Net Margin |
| 172.82 | -28.17 | -15.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Credo Technology. More…
| Operations | Investing | Financing |
| -24.61 | -130.94 | 4.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Credo Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 395.7 | 48.27 | 2.32 |
Key Ratios Snapshot
Some of the financial key ratios for Credo Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 50.7% | – | -19.1% |
| FCF Margin | ROE | ROA |
| -26.8% | -5.9% | -5.2% |
Analysis – Credo Technology Intrinsic Stock Value
At GoodWhale, we have performed an analysis of CREDO TECHNOLOGY‘s financials. Our proprietary Valuation Line revealed that the intrinsic value of CREDO TECHNOLOGY share is around $15.1. More…
Peers
The company’s products and services are used by customers in a wide range of industries, including telecommunications, media, technology, and entertainment. Credo Technology Group Holding Ltd has a strong track record of providing high-quality products and services to its customers. The company’s products and services are backed by a team of experienced and knowledgeable professionals. Credo Technology Group Holding Ltd has a proven track record of delivering innovative and high-quality products and services to its customers. The company is committed to providing the best possible technology solutions to its customers.
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Summary
CREDO TECHNOLOGY had a disappointing first quarter in FY2024, with total revenue of USD 35.1 million, a 24.5% decrease year-on-year. Net income was reported at USD -11.7 million, down from the net income of -0.1 million in the prior year. This news caused the stock price to drop on the same day.
For investors, this is an indication that CREDO TECHNOLOGY may be a risky investment, as the company looks to steady its finances and rebuild investor confidence. Investors should look for signs of improvement such as stronger annual revenue growth, increased profitability, and reduced debt levels.
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