Credo Technology Group Holding Ltd (CRDO) reported its fiscal first-quarter 2027 results after the market close on Tuesday, and the numbers were solid. But Wall Street seemed to want more, sending shares down in after-hours trading.
The connectivity solutions company posted revenue of approximately $479 million, beating analyst estimates of $471.77 million. Adjusted earnings came in at $1.20 per share, also topping the expected $1.17. Revenue was up a whopping 114.7% year-over-year and 9.6% sequentially. Gross margin landed at 64.5%, or 68% on an adjusted basis.
CEO Bill Brennan sounded upbeat about the company's positioning. "Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper. As AI infrastructure scales, we will continue to provide an innovative suite of reliable and energy-efficient connectivity solutions for the data center," he said.
Credo exited the quarter with $764.3 million in cash and short-term investments, giving it plenty of runway.
Looking ahead, the company expects second-quarter revenue in the range of $525 million to $535 million, versus estimates of $515.79 million. It also anticipates adjusted gross margin between 67% and 69% in the second quarter.
Management will discuss the quarter on an earnings call scheduled for 5 p.m. ET.
Despite the beat and strong guidance, shares were down 4.43% in Tuesday's after-hours session, trading at $197.47 at the time of publication. Sometimes the market just wants more, even when the news is good.
