We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cirrus Logic (CRUS) Q3 Earnings Top Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Cirrus Logic Inc (CRUS - Free Report) reported adjusted third-quarter fiscal 2023 earnings of $2.40 per share, beating the Zacks Consensus Estimate by 20.6%. However, the bottom line decreased 5.5% from the prior-year quarter’s $2.54 per share.
Total revenues of $590.6 million surpassed the Zacks Consensus Estimate by 9.8% and increased 7.7% year over year. The performance was driven by its increasing demand for its solutions amid rising smartphone demand. along with higher ASPs that offset increases in costs.
Segment Details
This 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, Inc. Price, Consensus and EPS Surprise
CRUS’ High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 41% to total revenues in the fiscal third quarter and surged 17.8% year over year to $243.3 million.
The Audio segment’s sales increased 1.6% to $347.3 million and contributed 59% to the total revenues.
Margins
Non-GAAP gross margin was 50.3%, which contracted 250 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses rose 6.6% year over year to $123.1 million.
Non-GAAP operating income of $173.9 million decreased 0.2% year over year. Moreover, the non-GAAP operating profit margin contracted 240 bps to 29.4% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal third quarter with cash and marketable securities of $434.5 million compared with $427.9 million as of Sep 24, 2022.
As of Dec 24, 2022, accounts receivable were $270.5 million compared with $304.6 million as of Sep 24, 2022.
In the fiscal third quarter, CRUS reported $180.9 million as net cash provided from operations compared with $135.6 million of cash used in the prior-year quarter. Free cash flow was $173.3 million in the quarter under review.
The company repurchased 712,883 shares worth $50 million in the quarter under review. As of Dec 24, 2022 the company had $536.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million in the fiscal first quarter of 2023.
Outlook
For fourth-quarter fiscal 2023, the company projects revenues between $340 million and $400 million. Combined R&D and SG&A are projected to be between $153 million and $159 million. The gross margin is expected to be in the range of 49-51%.
Zacks Rank & Other Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have gained 9.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 32.8% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.54 per share, up by 4.1% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 7.8%. Shares of SMCI have been up 108.3% in the past year
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cirrus Logic (CRUS) Q3 Earnings Top Estimates, Revenues Up Y/Y
Cirrus Logic Inc (CRUS - Free Report) reported adjusted third-quarter fiscal 2023 earnings of $2.40 per share, beating the Zacks Consensus Estimate by 20.6%. However, the bottom line decreased 5.5% from the prior-year quarter’s $2.54 per share.
Total revenues of $590.6 million surpassed the Zacks Consensus Estimate by 9.8% and increased 7.7% year over year. The performance was driven by its increasing demand for its solutions amid rising smartphone demand. along with higher ASPs that offset increases in costs.
Segment Details
This 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, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
CRUS’ High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 41% to total revenues in the fiscal third quarter and surged 17.8% year over year to $243.3 million.
The Audio segment’s sales increased 1.6% to $347.3 million and contributed 59% to the total revenues.
Margins
Non-GAAP gross margin was 50.3%, which contracted 250 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses rose 6.6% year over year to $123.1 million.
Non-GAAP operating income of $173.9 million decreased 0.2% year over year. Moreover, the non-GAAP operating profit margin contracted 240 bps to 29.4% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal third quarter with cash and marketable securities of $434.5 million compared with $427.9 million as of Sep 24, 2022.
As of Dec 24, 2022, accounts receivable were $270.5 million compared with $304.6 million as of Sep 24, 2022.
In the fiscal third quarter, CRUS reported $180.9 million as net cash provided from operations compared with $135.6 million of cash used in the prior-year quarter. Free cash flow was $173.3 million in the quarter under review.
The company repurchased 712,883 shares worth $50 million in the quarter under review. As of Dec 24, 2022 the company had $536.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million in the fiscal first quarter of 2023.
Outlook
For fourth-quarter fiscal 2023, the company projects revenues between $340 million and $400 million. Combined R&D and SG&A are projected to be between $153 million and $159 million. The gross margin is expected to be in the range of 49-51%.
Zacks Rank & Other Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Super Micro Computer (SMCI - Free Report) . While Jabil sports a Zacks Rank #1 (Strong Buy), Arista and Super Micro Computer carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have gained 9.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 32.8% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.54 per share, up by 4.1% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 7.8%. Shares of SMCI have been up 108.3% in the past year