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Cirrus Logic (CRUS) Q4 Earnings & Revenues Beat, Rise Y/Y

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Cirrus Logic Inc. (CRUS - Free Report) delivered better-than-anticipated fourth-quarter fiscal 2022 results, with the top and bottom lines surpassing the Zacks Consensus Estimate and increasing year over year.

The company reported adjusted earnings of $2.01 per share, beating the Zacks Consensus Estimate by 42.5%. The bottom line rose 204.5% from the prior-year quarter’s 66 cents.

Top-Line Details

Total revenues of $490 million surpassed the Zacks Consensus Estimate by 16.5% and increased 67% year over year.

Cirrus Logic, Inc. Price, Consensus and EPS Surprise

 

Cirrus Logic, Inc. Price, Consensus and EPS Surprise

Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote

Along with increasing investments in R&D, Cirrus Logic is accelerating sales momentum and executing strategic initiatives, which will help achieve sustainable growth over the next year. As part of its strategic initiatives, the company is consistently focused on strengthening its presence in the technology sector, as well as broadening end-market exposure.

The Texas-based company rearranged its reportable segments and created a separate category in fourth-quarter fiscal 2021, namely 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 33% to total revenues in the fiscal fourth quarter. Revenues from the same division surged 182% year over year to $162.8 million on strong demand for its camera controllers, haptics & sensing, and recently acquired fast-charging solutions.

The Audio segment’s sales increased 38.7% to $327 million and contributed 67% to the total revenues.

Margins

Non-GAAP gross profit of $259 million climbed 74.5% on a year-over-year basis.

Cirrus Logic’s non-GAAP operating expenses rose 16.1% year over year to $123 million.

Non-GAAP operating income of $135.9 million increased 221% year over year. Moreover, the non-GAAP operating profit margin increased to 27.7% from 14.4% reported in the year-ago quarter.

Balance Sheet and Cash Flow

The company exited the fiscal fourth quarter with cash and marketable securities of $380.4 million compared with the $497.9 million seen at the end of the prior-year quarter.

Accounts receivables were $240 million compared with $108.7 million recorded in the prior-year quarter.

In the fiscal fourth quarter, the company reported $258.2 million as net cash provided from operations.

The company repurchased 891,571 shares worth $75 million in the quarter under review. As of Mar 26, 2022, the company has $192.5 million worth of shares remaining under its existing share repurchase authorization.

Outlook

For first-quarter 2023, the company projects revenues between $350 million and $390 million. R&D and SG&A are projected between $147 million and $153 million. The gross margin is expected to be 49-51%.

Zacks Rank & Key Picks

Cirrus Logic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology sector are Broadcom (AVGO - Free Report) , Silicon Motion Technology (SIMO - Free Report) and Nova Measuring Instruments (NVMI - Free Report) . Broadcom, Silicon and Nova carry a Zacks Racks #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, rising 1.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 15.6%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 1.89%. Shares of Broadcom have grown 30.7% in the past year.

The Zacks Consensus Estimate for Silicon’s 2022 earnings is pegged at $7.73 per share, rising 3.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 9%.

Silicon’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 10.37%. Shares of Silicon have grown 22.5% in the past year.

The Zacks Consensus Estimate for Nova’s fiscal 2022 earnings is pegged at $4.19 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 32.2%.

Nova’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 17.1%. Shares of Nova have grown 11.4 % in the past year.