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Cirrus Logic (CRUS) Up 11.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Cirrus Logic (CRUS - Free Report) . Shares have added about 11.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cirrus Logic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cirrus Logic Q1 Earnings & Revenues Beat
Cirrus Logic 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.
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.
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.
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, the company 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
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 17.55% due to these changes.
VGM Scores
At this time, Cirrus Logic has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cirrus Logic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Advanced Micro Devices (AMD - Free Report) , has gained 9.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Advanced Micro reported revenues of $5.84 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.69 for the same period compares with $0.58 a year ago.
For the current quarter, Advanced Micro is expected to post earnings of $0.91 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advanced Micro. Also, the stock has a VGM Score of F.
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Cirrus Logic (CRUS) Up 11.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Cirrus Logic (CRUS - Free Report) . Shares have added about 11.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cirrus Logic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cirrus Logic Q1 Earnings & Revenues Beat
Cirrus Logic 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.
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.
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.
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, the company 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
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 17.55% due to these changes.
VGM Scores
At this time, Cirrus Logic has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cirrus Logic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cirrus Logic belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Advanced Micro Devices (AMD - Free Report) , has gained 9.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Advanced Micro reported revenues of $5.84 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.69 for the same period compares with $0.58 a year ago.
For the current quarter, Advanced Micro is expected to post earnings of $0.91 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advanced Micro. Also, the stock has a VGM Score of F.