We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cirrus Logic (CRUS) Up 5.4% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Cirrus Logic (CRUS - Free Report) . Shares have added about 5.4% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Cirrus Logic Q2 Earnings & Revenues Beat
Cirrus delivered strong second-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate and increasing year over year.
The company reported adjusted earnings of $1.99 per share, beating the Zacks Consensus Estimate by 37.2%. The bottom line rose 9.3% from the prior-year quarter's earnings of $1.82 per share.
Total revenues of $540.6 million surpassed the Zacks Consensus Estimate by 14.9% and increased 16% year over year. The performance was driven by its high mixed-signal content gains in smartphones along with a higher unit volume
Segment Details
This Texas-based company rearranged its reportable segments and created a separate category in fourth-quarter fiscal 2021, High-Performance Mixed-Signal and Audio. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 38% to total revenues in the fiscal second quarter. Revenues from the same division surged 22.8% year over year to $202.7 million.
The Audio segment’s sales increased 12.3% to $337.8 million and contributed 62% to the total revenues.
Margins
Non-GAAP gross margin was 50.2%, which contracted 110 basis points (bps) year over year.Cirrus Logic’s non-GAAP operating expenses rose 8.2% year over year to $123.9 million.
Non-GAAP operating income of $147.7 million increased 18.5% year over year. Moreover, the non-GAAP operating profit margin increased 50 bps to 27.3% from the year-ago quarter
Balance Sheet and Cash Flow
The company exited the fiscal second quarter with cash and marketable securities of $427.9 million compared with $379.3 million as of Jun 25.
As of Sep 24, accounts receivables were $304.6 million compared with $206.3 million recorded as of Jun 25.
In the fiscal second quarter, the company reported $36 million as net cash provided from operations compared with $29 million reported in the prior-year quarter.
The company repurchased 582,876 shares worth $50 million in the quarter under review. As of Sep 24, the company had $586.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million in the fiscal first quarter.
Outlook
For third-quarter of fiscal 2023, the company projects revenues between $520 million and $580 million. Combined R&D and SG&A are projected to be between $153 million and $159 million. The gross margin is expected to be 49-51%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Cirrus Logic has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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, FormFactor (FORM - Free Report) , has gained 22.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
FormFactor reported revenues of $180.87 million in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.24 for the same period compares with $0.40 a year ago.
FormFactor is expected to post earnings of $0.03 per share for the current quarter, representing a year-over-year change of -93.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -414.3%.
FormFactor has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cirrus Logic (CRUS) Up 5.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Cirrus Logic (CRUS - Free Report) . Shares have added about 5.4% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Cirrus Logic Q2 Earnings & Revenues Beat
Cirrus delivered strong second-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate and increasing year over year.
The company reported adjusted earnings of $1.99 per share, beating the Zacks Consensus Estimate by 37.2%. The bottom line rose 9.3% from the prior-year quarter's earnings of $1.82 per share.
Total revenues of $540.6 million surpassed the Zacks Consensus Estimate by 14.9% and increased 16% year over year. The performance was driven by its high mixed-signal content gains in smartphones along with a higher unit volume
Segment Details
This Texas-based company rearranged its reportable segments and created a separate category in fourth-quarter fiscal 2021, High-Performance Mixed-Signal and Audio. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 38% to total revenues in the fiscal second quarter. Revenues from the same division surged 22.8% year over year to $202.7 million.
The Audio segment’s sales increased 12.3% to $337.8 million and contributed 62% to the total revenues.
Margins
Non-GAAP gross margin was 50.2%, which contracted 110 basis points (bps) year over year.Cirrus Logic’s non-GAAP operating expenses rose 8.2% year over year to $123.9 million.
Non-GAAP operating income of $147.7 million increased 18.5% year over year. Moreover, the non-GAAP operating profit margin increased 50 bps to 27.3% from the year-ago quarter
Balance Sheet and Cash Flow
The company exited the fiscal second quarter with cash and marketable securities of $427.9 million compared with $379.3 million as of Jun 25.
As of Sep 24, accounts receivables were $304.6 million compared with $206.3 million recorded as of Jun 25.
In the fiscal second quarter, the company reported $36 million as net cash provided from operations compared with $29 million reported in the prior-year quarter.
The company repurchased 582,876 shares worth $50 million in the quarter under review. As of Sep 24, the company had $586.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million in the fiscal first quarter.
Outlook
For third-quarter of fiscal 2023, the company projects revenues between $520 million and $580 million. Combined R&D and SG&A are projected to be between $153 million and $159 million. The gross margin is expected to be 49-51%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Cirrus Logic has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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, FormFactor (FORM - Free Report) , has gained 22.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
FormFactor reported revenues of $180.87 million in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.24 for the same period compares with $0.40 a year ago.
FormFactor is expected to post earnings of $0.03 per share for the current quarter, representing a year-over-year change of -93.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -414.3%.
FormFactor has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.