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Cirrus Logic (CRUS) Reliance on International Sales: What Investors Need to Know
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Did you analyze how Cirrus Logic (CRUS - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this chipmaker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of CRUS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The recent quarter saw the company's total revenue reaching $374.03 million, marking an improvement of 18% from the prior-year quarter. Next, we'll examine the breakdown of CRUS' revenue from abroad to comprehend the significance of its international presence.
A Dive into CRUS' International Revenue Trends
Of the total revenue, $205.71 million came from China during the last fiscal quarter, accounting for 55.0%. This represented a surprise of +7.09% as analysts had expected the region to contribute $192.09 million to the total revenue. In comparison, the region contributed $215.14 million, or 57.9%, and $190.86 million, or 60.2%, to total revenue in the previous and year-ago quarters, respectively.
Rest of World accounted for 43.6% of the company's total revenue during the quarter, translating to $163.1 million. Revenues from this region represented a surprise of +38.08%, with Wall Street analysts collectively expecting $118.12 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $154.87 million (41.7%) and $124 million (39.1%) to the total revenue, respectively.
Prospective Revenues in International Markets
Wall Street analysts expect Cirrus Logic to report a total revenue of $520 million in the current fiscal quarter, which suggests an increase of 8.1% from the prior-year quarter. Revenue shares from China and Rest of World are predicted to be 56.1% and 34%, corresponding to amounts of $291.51 million and $176.79 million, respectively.
For the full year, the company is expected to generate $1.79 billion in total revenue, up 0.2% from the previous year. Revenues from China and Rest of World are expected to constitute 59.3% ($1.06 billion) and 35.9% ($643.24 million) of the total, respectively.
In Conclusion
Relying on international markets for revenues, Cirrus Logic faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
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Cirrus Logic (CRUS) Reliance on International Sales: What Investors Need to Know
Did you analyze how Cirrus Logic (CRUS - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this chipmaker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of CRUS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The recent quarter saw the company's total revenue reaching $374.03 million, marking an improvement of 18% from the prior-year quarter. Next, we'll examine the breakdown of CRUS' revenue from abroad to comprehend the significance of its international presence.
A Dive into CRUS' International Revenue Trends
Of the total revenue, $205.71 million came from China during the last fiscal quarter, accounting for 55.0%. This represented a surprise of +7.09% as analysts had expected the region to contribute $192.09 million to the total revenue. In comparison, the region contributed $215.14 million, or 57.9%, and $190.86 million, or 60.2%, to total revenue in the previous and year-ago quarters, respectively.
Rest of World accounted for 43.6% of the company's total revenue during the quarter, translating to $163.1 million. Revenues from this region represented a surprise of +38.08%, with Wall Street analysts collectively expecting $118.12 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $154.87 million (41.7%) and $124 million (39.1%) to the total revenue, respectively.
Prospective Revenues in International Markets
Wall Street analysts expect Cirrus Logic to report a total revenue of $520 million in the current fiscal quarter, which suggests an increase of 8.1% from the prior-year quarter. Revenue shares from China and Rest of World are predicted to be 56.1% and 34%, corresponding to amounts of $291.51 million and $176.79 million, respectively.For the full year, the company is expected to generate $1.79 billion in total revenue, up 0.2% from the previous year. Revenues from China and Rest of World are expected to constitute 59.3% ($1.06 billion) and 35.9% ($643.24 million) of the total, respectively.
In Conclusion
Relying on international markets for revenues, Cirrus Logic faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Cirrus Logic currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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