Credo Technology Intrinsic Value – CREDO TECHNOLOGY Reports Earnings Results for Q1 FY2024

August 30, 2023

🌥️Earnings Overview

CREDO TECHNOLOGY ($NASDAQ:CRDO) reported its earnings results for the first quarter of FY2024, ending on July 31, 2023, on August 24, 2023. The total revenue for the quarter amounted to USD 35.1 million, which was a decrease of 24.5% from the same quarter the year before. Net income for the quarter was USD -11.7 million, compared to a loss of -0.1 million in the previous year.

Stock Price

On Thursday, CREDO TECHNOLOGY reported results for the first quarter of the fiscal year 2024. The company’s stock opened at $16.3, but closed at $14.9 – representing a drop of 7.4% from the previous quarter’s closing price of $16.1. This significant decrease in stock price was attributed to the company’s weak performance in the first quarter. CREDO TECHNOLOGY released a statement citing lower-than-expected revenue growth and margin pressure as the reasons behind the disappointing results.

This indicates the increased competitive pressure in the industry and the need for CREDO TECHNOLOGY to improve its marketing strategies in order to remain profitable. While the Q1 results may have been discouraging, investors are hopeful that the company’s upcoming initiatives will be successful and that these will help to boost its stock price. In the meantime, CREDO TECHNOLOGY intends to focus on investing in research and development so as to strengthen its core competencies and capture new market opportunities. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • 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%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • 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
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Credo Technology Intrinsic Value

    At GoodWhale, we conducted a comprehensive analysis of CREDO TECHNOLOGY‘s financials. Our proprietary Valuation Line, which looks at performance metrics like revenue and cost of goods sold, indicates that the fair value of CREDO TECHNOLOGY shares is around $15.1. Currently, CREDO TECHNOLOGY stock is trading at $14.9, making it a fair price that is undervalued by 1.5%. Given the attractive price and potential upside, CREDO TECHNOLOGY shares may be a good investment opportunity. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis

  • 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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    Investors were disappointed with the first quarter results of CREDO TECHNOLOGY for FY2024. Total revenue for the quarter was USD 35.1 million, a decrease of 24.5% compared to the same period last year. The net income for the quarter was also down significantly, with a loss of USD -11.7 million versus a much smaller loss of -0.1 million in the prior year.

    This was reflected in the stock price, which moved down on the news of the earnings report. Going forward, investors will be closely monitoring any changes in the company’s performance and financials to gauge whether their investment in CREDO TECHNOLOGY is worthwhile.

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