Overview

• Credo fiscal Q2 revenue grows 272.1% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 beats consensus, reflecting strong operational performance

• Company expects fiscal Q3 revenue between $335 mln and $345 mln, indicating continued growth

Outlook

• Company expects Q3 revenue between $335.0 mln and $345.0 mln

• Credo projects Q3 GAAP gross margin of 63.8% to 65.8%

• Company anticipates Q3 non-GAAP operating expenses of $68.0 mln to $72.0 mln

Result Drivers

• AI CLUSTER EXPANSION - Revenue growth attributed to the build-out of AI training and inference clusters

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Credo Technology Group Holding Ltd is $165.00, about 7.6% below its November 28 closing price of $177.60

• The stock recently traded at 75 times the next 12-month earnings vs. a P/E of 69 three months ago

Press Release: ID:nBwsl6Pxa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)