For Immediate Release
Chicago, IL – August 1, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Cirrus Logic Inc. (CRUS - Snapshot Report), Apple Inc. (AAPL - Analyst Report), Texas Instruments Inc. (TXN - Analyst Report), ON Semiconductor (ONNN - Analyst Report) and Maxim Integrated Products (MXIM - Analyst Report).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Weak 1Q for Cirrus, Shares Up Big
Cirrus Logic Inc. (CRUS - Snapshot Report) reported first quarter 2013 adjusted earnings of 16 cents per share, which was in line with the Zacks Consensus Estimate. The adjusted or non-GAAP earnings per share exclude amortization of acquisition-related intangible assets, but include stock-based compensation expense. The quarter’s earnings dropped 24.7% from the year-ago level.
Despite the miss, the company’s shares leaped 23%, reflecting positive investor sentiment on the back of strong revenue guidance.
Total revenue for the first quarter was $99.0 million, up 7.3% on a year-over-year basis. This was slightly below the Zacks Consensus Estimate of $101.0 million, affected by lower sales of Apple Inc.’s (AAPL - Analyst Report) iPhone, iMac and iPod. Apple happens to be Cirrus’ prime customer, with 62.0% share of 2012 revenues.
Segment-wise, Audio Product revenue increased 13.5% year over year to $80.7 million, while Energy product revenue came in at $18.3 million, down 13.6% year over year.
Reported gross margin in the quarter was 54.0%, up from 51.7% in the year-ago quarter.
Operating margin was 10.6% versus 15.5% in the year-ago quarter. The company’s total operating expenses increased 28.8% on a year-over-year basis. Higher operating expenses were mainly due to 32.7% and 23.6% year-over-year increases in research and development (R&D) and selling, general and administrative (SG&A) expenses, respectively.
Net income on a GAAP basis was $6.9 million or 10 cents per diluted share compared with $9.2 million or 13 cents in the year-ago quarter.
Excluding the amortization of acquisition-related intangible assets but including stock-based compensation expense, non-GAAP net income for the first quarter was $10.6 million or 16 cents per diluted share compared with $14.5 million or 21 cents in the year-ago quarter.
Cash and short-term investments were $166.7 million versus $181.9 million in the previous quarter. The company has no long-term debt.
Management has provided an upbeat outlook for the second quarter. Revenue is expected to be $170.0–$190.0 million, with gross margin in the 52–54% range and total operating expenses of between $49 million and $53 million.
Cirrus affirmed that its new products would hit the market very soon, increasing consumer acceptance and boosting its sales. As a part of that effort, the company is heavily investing in R&D, which it believes will soon start paying off.
Based on the new launches, higher sales of mobile devices and SSDs (solid state drives) and wins at Apple, Cirrus forecasts solid growth for the rest of fiscal 2013.
The Zacks Consensus Estimates for second quarter and fiscal 2013 are pegged at 34 cents and $1.48 per share, respectively.
Cirrus posted a weak first quarter with the bottom line matching the Zacks Consensus Estimate and the top line missing the same. Revenues could be better but lower iPhone sales took a toll on the company. But Cirrus provided an upbeat second quarter guidance, which was enough to encourage investors.
We are also positive about the strong demand for its analog and mixed-signal integrated circuits for audio products.
However, keeping in view Apple’s weak third quarter results (announced last week) and uncertainty regarding the ramp of iPhone 5, we believe that the guidance is a bit aggressive.
Overdependence on Apple and stiff competition from the likes of Texas Instruments Inc. (TXN - Analyst Report), ON Semiconductor (ONNN - Analyst Report) and Maxim Integrated Products (MXIM - Analyst Report) leads to a Zacks #4 Rank, implying a short-term Sell rating.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339