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Cirrus Logic's (CRUS) Q1 Earnings & Revenues Beat, Rise Y/Y

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Cirrus Logic Inc. (CRUS - Free Report) reported first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.12, which surpassed the Zacks Consensus Estimate by 80.7%. Also, the bottom line expanded 67.2% from the prior-year quarter’s 67 cents.

Total revenues of $374 million beat the Zacks Consensus Estimate by 17.7% and soared 18% year over year. The uptick was driven primarily by stronger-than-anticipated shipments into the smartphone market. 

The company’s largest customer accounted for 88% of total revenues in the fiscal first quarter.

Following the announcement, the company’s shares gained 11.9% in aftermarket trading on Aug 6, 2024. The stock has rallied 39.1% in the past year compared with the sub-industry’s growth of 37.7%.

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Segment Details

This Texas-based company rearranged its reportable segments and created separate categories, High-Performance Mixed-Signal and Audio in the fourth quarter of fiscal 2021. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.

CRUS’ High-Performance Mixed-Signal segment includes a few of its non-audio products. The segment, which contributed 41% to total revenues in the fiscal first quarter, rose 27.9% year over year to $155 million.

The Audio segment’s sales grew 11.8% to $218.9 million and contributed 59% to total revenues.

In the fiscal first quarter, our estimates for the High-Performance Mixed-Signal and Audio segments were pegged at $188.6 million and $124.5 million, respectively.

Cirrus Logic, Inc. Price, Consensus and EPS Surprise Cirrus Logic, Inc. Price, Consensus and EPS Surprise

Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote

Margins

Non-GAAP gross margin was 50.6% compared with 50.4% in the prior year quarter.

Cirrus Logic’s non-GAAP operating expenses rose 3.7% year over year to $118 million due to increasing variable compensation.

Non-GAAP operating income of $71.2 million grew 55.2% year over year. Non-GAAP operating profit margin improved to 19% from 14.5%.

Balance Sheet and Cash Flow

The company exited the fiscal first quarter with cash and marketable securities of $517 million compared with $388.1 million in the prior-year period.

As of Jun 29, 2024, accounts receivables were $190.1 million compared with $286 million in the previous-year quarter.

In the fiscal first quarter, CRUS generated $87.2 million as net cash from operations against $39.8 million as net cash used from operations in the prior-year quarter. Free cash flow was $77 million in the quarter under review.

The company repurchased 361,218 shares worth $41 million in the reported quarter. As of Jun 29, 2024, it had $274.1 million worth of shares remaining under its existing share repurchase authorization.

Fiscal Q2 Guidance

Management projects revenues between $490 million and $550 million.

Combined R&D and SG&A are anticipated to be between $149 million and $155 million, respectively. 

The gross margin is expected to be in the range of 50-52%.

Non-GAAP operating expenses are estimated to be in the band of $125-$130 million.

Zacks Rank

Cirrus Logic currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

BlackBerry’s (BB - Free Report) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. 

Shares of BB have lost 53% in the past year. 

Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.

Shares of BMI have gained 18.2% in the past year. 

SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.

In the past year, shares of SAP have gained 50.8%.


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