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Cirrus Logic (CRUS) Q4 Earnings & Revenues Top Estimates
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Cirrus Logic Inc. (CRUS - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.24, which beat the Zacks Consensus Estimate by 85.1%. Also, the bottom line increased 34.7% from the prior-year quarter’s 92 cents.
Total revenues of $371.8 million surpassed the Zacks Consensus Estimate by 16.2% but decreased 0.3% year over year. The downtick was due to a reduction of general market and custom components, primarily in non-smartphone applications.
Following the announcement, the company’s shares gained 11.9% in the after-market trading on May 7, 2024. The stock has rallied 18.2% in the past year compared with the sub-industry’s growth of 84.1%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
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 39% to total revenues in the fiscal fourth quarter, rose 3.4% year over year to $145.1 million.
The Audio segment’s sales decreased 2.5% to $226.6 million and contributed 61% to total revenues.
We estimated revenues from the High-Performance Mixed-Signal and Audio segments to be $124.2 million and $196.2 million, respectively, in the fiscal fourth quarter.
Margins
Non-GAAP gross margin was 51.9%, which expanded 180 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses fell 2.8% year over year to $116.5 million.
Non-GAAP operating income of $76.5 million rose 14.3% year over year. Non-GAAP operating profit margin expanded 270 bps to 20.6% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal fourth quarter with cash and marketable securities of $526.5 million compared with $516.7 million as of Dec 30, 2023. As of Mar 30, 2024, accounts receivables were $162.4 million compared with $217.2 million as of Dec 30, 2023.
In the fiscal fourth quarter, CRUS reported $170.5 million of cash flow from operations. In the prior-year quarter, it generated $48.3 million of net cash from operations. Free cash flow was $162.8 million in the quarter under review.
The company repurchased 548,000 shares worth $50 million in the reported quarter. As of Mar 30, 2024, it had $315.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For first-quarter fiscal 2025, management projects revenues between $290 million and $350 million. Combined R&D and SG&A are anticipated to be between $142 million and $148 million. Gross margin is expected to be in the range of 49%-51%.
Zacks Rank & Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 15.6%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35.8% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 6.7% in the past 60 days to $1.43. PINS’ long-term earnings growth rate is 23.4%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 38.7%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.9% in the past 60 days to $7.53. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 62.7% in the past year.
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Cirrus Logic (CRUS) Q4 Earnings & Revenues Top Estimates
Cirrus Logic Inc. (CRUS - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.24, which beat the Zacks Consensus Estimate by 85.1%. Also, the bottom line increased 34.7% from the prior-year quarter’s 92 cents.
Total revenues of $371.8 million surpassed the Zacks Consensus Estimate by 16.2% but decreased 0.3% year over year. The downtick was due to a reduction of general market and custom components, primarily in non-smartphone applications.
Following the announcement, the company’s shares gained 11.9% in the after-market trading on May 7, 2024. The stock has rallied 18.2% in the past year compared with the sub-industry’s growth of 84.1%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
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 39% to total revenues in the fiscal fourth quarter, rose 3.4% year over year to $145.1 million.
The Audio segment’s sales decreased 2.5% to $226.6 million and contributed 61% to total revenues.
We estimated revenues from the High-Performance Mixed-Signal and Audio segments to be $124.2 million and $196.2 million, respectively, in the fiscal fourth quarter.
Margins
Non-GAAP gross margin was 51.9%, which expanded 180 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses fell 2.8% year over year to $116.5 million.
Non-GAAP operating income of $76.5 million rose 14.3% year over year. Non-GAAP operating profit margin expanded 270 bps to 20.6% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal fourth quarter with cash and marketable securities of $526.5 million compared with $516.7 million as of Dec 30, 2023.
As of Mar 30, 2024, accounts receivables were $162.4 million compared with $217.2 million as of Dec 30, 2023.
In the fiscal fourth quarter, CRUS reported $170.5 million of cash flow from operations. In the prior-year quarter, it generated $48.3 million of net cash from operations. Free cash flow was $162.8 million in the quarter under review.
The company repurchased 548,000 shares worth $50 million in the reported quarter. As of Mar 30, 2024, it had $315.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For first-quarter fiscal 2025, management projects revenues between $290 million and $350 million. Combined R&D and SG&A are anticipated to be between $142 million and $148 million. Gross margin is expected to be in the range of 49%-51%.
Zacks Rank & Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Badger Meter (BMI - Free Report) , Pinterest (PINS - Free Report) and Arista Networks (ANET - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy), whereas Pinterest and Arista Networks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 9.9% in the past 60 days to $3.89. BMI’s long-term earnings growth rate is 15.6%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.7%. BMI shares have risen 35.8% in the past year.
The Zacks Consensus Estimate for PINS’s 2024 EPS has increased 6.7% in the past 60 days to $1.43. PINS’ long-term earnings growth rate is 23.4%.
Pinterest’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 38.7%. Shares of PINS have gained 13% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.9% in the past 60 days to $7.53. ANET’s long-term earnings growth rate is 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 13.3%. Shares of ANET have gained 62.7% in the past year.