Analysts Are Updating Their Credo Technology Group Holding Ltd (NASDAQ:CRDO) Estimates After Its Full-Year Results

Shareholders will be ecstatic, with their stake up 31% over the past week following Credo Technology Group Holding Ltd's (NASDAQ:CRDO) latest annual results. Revenues were in line with expectations, at US$193m, while statutory losses ballooned to US$0.18 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Credo Technology Group Holding

Following the latest results, Credo Technology Group Holding's ten analysts are now forecasting revenues of US$311.9m in 2025. This would be a huge 62% improvement in revenue compared to the last 12 months. Credo Technology Group Holding is also expected to turn profitable, with statutory earnings of US$0.086 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$307.4m and earnings per share (EPS) of US$0.16 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at US$27.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Credo Technology Group Holding at US$30.00 per share, while the most bearish prices it at US$22.00. This is a very narrow spread of estimates, implying either that Credo Technology Group Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Credo Technology Group Holding's growth to accelerate, with the forecast 62% annualised growth to the end of 2025 ranking favourably alongside historical growth of 35% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Credo Technology Group Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$27.58, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Credo Technology Group Holding going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Credo Technology Group Holding .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.