CRDO stock | Earnings update

 Credo Technology (CRDO) stock did indeed drop in extended trading, falling about 14% to roughly $195, despite beating Wall Street's fourth-quarter revenue and earnings estimates. The sell-off was triggered by management's prediction of shrinking profit margins and lowered guidance. [1, 2, 3]

Here are the specific details from the report released today:

• Earnings Per Share (EPS): Adjusted EPS of \(\$1.16\), beating the analyst consensus of \(\$1.03\).
• Revenue: Reached \(\$437\) million, beating estimates of \(\$431.79\) million and up 157% year-over-year.
• The Cause of the Drop: Credo predicted shrinking gross margins in the current period, which raised concerns about a slower pace of growth.
• Forward Guidance: Q1 fiscal 2027 revenue is expected between \(\$465\) million and \(\$475\) million. [1, 2, 3, 4, 5]

The stock experienced extreme volatility, having just hit a new all-time high of \(\$241.27\) earlier today before the earnings release. [1, 2, 3]