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
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 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…
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
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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