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Cirrus Logic (CRUS) Q4 Earnings Top Estimates, Down Y/Y
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Cirrus Logic Inc (CRUS - Free Report) reported adjusted fourth-quarter fiscal 2023 earnings of 92 cents per share, beating the Zacks Consensus Estimate by 10.8%. However, the bottom line decreased 54.2% from the prior-year quarter’s $2.01 per share.
Total revenues of $372.8 million surpassed the Zacks Consensus Estimate by 1% but decreased 24% year over year. The downtick was primarily due to lower general market sales and reduced smartphone sales because a lower-priced smartphone was introduced in the previous quarter. Also, prolonged weakness in the China smartphone market affected the sales of general market battery and power products.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
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.
CRUS’ High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 38% to total revenues in the fiscal fourth quarter and declined 13.8% year over year to $140.4 million.
The Audio segment’s sales decreased 29% to $232.4 million and contributed 62% to the total revenues.
Margins
Non-GAAP gross margin was 50.1%, which contracted 280 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses decreased 2.2% year over year to $119.8 million.
Non-GAAP operating income of $66.9 million decreased 50.8% year over year. Moreover, the non-GAAP operating profit margin contracted 980 bps to 17.9% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal fourth quarter with cash and marketable securities of $445.8 million compared with $434.5 million as of Dec 24, 2022. As of Mar 25, 2023, accounts receivable were $150.5 million compared with $270.5 million as of Dec 24, 2022.
In the fiscal fourth quarter, CRUS reported $48.3 million as net cash provided from operations compared with $258.2 million in the prior-year quarter. Free cash flow was $36.6 million in the quarter under review.
The company repurchased 337,522 shares worth $35 million in the quarter under review. As of Mar 25, 2023, the company had $501.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For first-quarter fiscal 2024, the company projects revenues between $260 million and $320 million. Combined R&D and SG&A are projected to be between $142 million and $148 million. The gross margin is expected to be in the range of 49-51%.
Zacks Rank & Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 1.8% in the past 60 days to $1.71 per share. The long-term earnings growth rate is anticipated to be 11.5%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.4%. Shares of DBX have decreased 7.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.
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Cirrus Logic (CRUS) Q4 Earnings Top Estimates, Down Y/Y
Cirrus Logic Inc (CRUS - Free Report) reported adjusted fourth-quarter fiscal 2023 earnings of 92 cents per share, beating the Zacks Consensus Estimate by 10.8%. However, the bottom line decreased 54.2% from the prior-year quarter’s $2.01 per share.
Total revenues of $372.8 million surpassed the Zacks Consensus Estimate by 1% but decreased 24% year over year. The downtick was primarily due to lower general market sales and reduced smartphone sales because a lower-priced smartphone was introduced in the previous quarter. Also, prolonged weakness in the China smartphone market affected the sales of general market battery and power products.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
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.
CRUS’ High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 38% to total revenues in the fiscal fourth quarter and declined 13.8% year over year to $140.4 million.
The Audio segment’s sales decreased 29% to $232.4 million and contributed 62% to the total revenues.
Margins
Non-GAAP gross margin was 50.1%, which contracted 280 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses decreased 2.2% year over year to $119.8 million.
Non-GAAP operating income of $66.9 million decreased 50.8% year over year. Moreover, the non-GAAP operating profit margin contracted 980 bps to 17.9% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal fourth quarter with cash and marketable securities of $445.8 million compared with $434.5 million as of Dec 24, 2022.
As of Mar 25, 2023, accounts receivable were $150.5 million compared with $270.5 million as of Dec 24, 2022.
In the fiscal fourth quarter, CRUS reported $48.3 million as net cash provided from operations compared with $258.2 million in the prior-year quarter. Free cash flow was $36.6 million in the quarter under review.
The company repurchased 337,522 shares worth $35 million in the quarter under review. As of Mar 25, 2023, the company had $501.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For first-quarter fiscal 2024, the company projects revenues between $260 million and $320 million. Combined R&D and SG&A are projected to be between $142 million and $148 million. The gross margin is expected to be in the range of 49-51%.
Zacks Rank & Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology space are Dropbox (DBX - Free Report) , Badger Meter (BMI - Free Report) and Enfusion (ENFN - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 1.8% in the past 60 days to $1.71 per share. The long-term earnings growth rate is anticipated to be 11.5%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.4%. Shares of DBX have decreased 7.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.