Back to top

Image: Bigstock

Cirrus Logic (CRUS) Q1 Earnings & Revenues Beat, Rise Y/Y

Read MoreHide Full Article

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.

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

 

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.