Will CRDO Stock Rise After Earnings?

Core Insights - Credo Technology (NASDAQ: CRDO) is set to announce its earnings on June 2, 2025, with historical data indicating a nearly equal probability of stock price movement post-announcement [1][2] - Analysts expect earnings of $0.27 per share on revenues of $159.59 million, a significant increase from the previous year's earnings of $0.07 per share on sales of $60.78 million [2] - The company has a market capitalization of $10 billion and generated $328 million in revenue over the past year, reporting an operating loss of $3.8 million but a net income of $5.1 million [2] Earnings Reaction History - Over the past five years, there have been 13 earnings data points for CRDO, with 7 positive and 6 negative one-day returns, resulting in a 54% occurrence of positive returns [5] - The median one-day return for positive outcomes was 23%, while the median for negative returns was -6.4% [5] - The percentage of positive returns increases to 58% when considering the last three years [5] Post-Earnings Positioning - Historical trends suggest that traders can benefit from understanding the correlation between short-term (1D) and medium-term (5D) returns after earnings announcements [3][4] - A strategy involves taking a position ahead of the earnings report based on historical probabilities and adjusting positions based on immediate and medium-term returns post-announcement [4] Correlation with Peer Earnings - The performance of peer companies can influence CRDO's stock reaction following earnings announcements, with pricing adjustments potentially occurring before the announcements [6]