Cirrus Logic Inc (CRUS - Free Report) delivered strong first-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 $1.12 per share, beating the Zacks Consensus Estimate by 31.8%. The bottom line rose 107% from the prior-year quarter’s 54 cents.
Total revenues of $394 million surpassed the Zacks Consensus Estimate by 6.3% and increased 42% year over year. The perfromance was driven by increasing demand for flagship devices, noted the company.
Segment Details
The 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 35% to total revenues in the fiscal first quarter. Revenues from the same division surged 132% year over year to $139.1 million on higher mixed-signal content gains along with a higher average selling price.
The Audio segment’s sales increased 17.1% to $254.5 million and contributed 65% to the total revenues.
Margins
Non-GAAP gross margin was 51.5% which expanded 90 basis points (bps) on a year-over-year basis.
Cirrus Logic’s non-GAAP operating expenses rose 15.9% year over year to $119.5 million.
Non-GAAP operating income of $83.4 million increased 125% year over year. Moreover, the non-GAAP operating profit margin increased to 21.2% from 13.4% reported in the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal first quarter with cash and marketable securities of $379.3 million compared with the $369.8 million as of Mar 26, 2022.
As of Jun 25, 2022, Accounts receivables were $206.3 million compared with $240 million recorded as of Mar 26, 2022.
In the fiscal first quarter, the company reported $74.4 million as net cash provided from operations.
The company repurchased 724,871 shares worth $56.4 million in the quarter under review. As of Jun 25, 2022, the company has $136.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million.
Outlook
For second-quarter 2023, the company projects revenues between $450 million and $490 million. R&D and SG&A are projected to be between $154 million and $160 million. The gross margin is expected to be 49-51%.
Zacks Rank & Key Picks
Cirrus Logic currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks from the broader technology sector worth consideration are Cadence Design Systems (CDNS - Free Report) , Intuit (INTU - Free Report) and Badger Meter (BMI - Free Report) . Cadence and Badger Meter sports a Zacks Rank #1 (Strong Buy) while Intuit carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days. Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.6% of their value in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.11 per share, up 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have increased 21.4% in the past year.
The Zacks Consensus Estimate for Intuit’s fiscal 2022 earnings is pegged at $11.72 per share, rising 0.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 15.6%.
Intuit’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 16.8%. Shares of INTU have lost 16.6% in the past year.
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Cirrus Logic Inc (CRUS - Free Report) delivered strong first-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 $1.12 per share, beating the Zacks Consensus Estimate by 31.8%. The bottom line rose 107% from the prior-year quarter’s 54 cents.
Total revenues of $394 million surpassed the Zacks Consensus Estimate by 6.3% and increased 42% year over year. The perfromance was driven by increasing demand for flagship devices, noted the company.
Segment Details
The 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 35% to total revenues in the fiscal first quarter. Revenues from the same division surged 132% year over year to $139.1 million on higher mixed-signal content gains along with a higher average selling price.
The Audio segment’s sales increased 17.1% to $254.5 million and contributed 65% to the total revenues.
Margins
Non-GAAP gross margin was 51.5% which expanded 90 basis points (bps) on a year-over-year basis.
Cirrus Logic’s non-GAAP operating expenses rose 15.9% year over year to $119.5 million.
Non-GAAP operating income of $83.4 million increased 125% year over year. Moreover, the non-GAAP operating profit margin increased to 21.2% from 13.4% reported in the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal first quarter with cash and marketable securities of $379.3 million compared with the $369.8 million as of Mar 26, 2022.
As of Jun 25, 2022, Accounts receivables were $206.3 million compared with $240 million recorded as of Mar 26, 2022.
In the fiscal first quarter, the company reported $74.4 million as net cash provided from operations.
The company repurchased 724,871 shares worth $56.4 million in the quarter under review. As of Jun 25, 2022, the company has $136.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million.
Outlook
For second-quarter 2023, the company projects revenues between $450 million and $490 million. R&D and SG&A are projected to be between $154 million and $160 million. The gross margin is expected to be 49-51%.
Zacks Rank & Key Picks
Cirrus Logic currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks from the broader technology sector worth consideration are Cadence Design Systems (CDNS - Free Report) , Intuit (INTU - Free Report) and Badger Meter (BMI - Free Report) . Cadence and Badger Meter sports a Zacks Rank #1 (Strong Buy) while Intuit carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days. Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.6% of their value in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.11 per share, up 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have increased 21.4% in the past year.
The Zacks Consensus Estimate for Intuit’s fiscal 2022 earnings is pegged at $11.72 per share, rising 0.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 15.6%.
Intuit’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 16.8%. Shares of INTU have lost 16.6% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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