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Cirrus Logic (CRUS) Q3 Earnings & Revenues Top Estimates, Up Y/Y
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Cirrus Logic Inc. (CRUS - Free Report) reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.89, which beat the Zacks Consensus Estimate by 43.8%. Also, the bottom line increased 20.4% from the prior-year quarter’s $2.40.
Total revenues of $619 million surpassed the Zacks Consensus Estimate by 14.7% and increased 5% year over year. The uptick was driven by solid sales of components shipping and smartphones, owing to strength in orders from its largest customer.
Following the announcement, the company’s shares gained 9.7% in the pre-market trading on Feb 7, 2024. The stock has lost 22.1% in the past year against the sub-industry’s growth of 80.9%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
This Texas-based company rearranged its reportable segments and created separate categories, High-Performance Mixed-Signal and Audio, in the fourth quarter of fiscal 2021. 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. The segment, which contributed 38.8% to total revenues in the fiscal third quarter, fell 1.2% year over year to $240.4 million.
The Audio segment’s sales increased 9% to $378.6 million and contributed 61.2% to total revenues.
We estimated revenues from the High-Performance Mixed-Signal and Audio segments to be $234.1 million and $303.3 million, respectively, in the fiscal third quarter.
Margins
Non-GAAP gross margin was 51.4%, which expanded 110 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses rose 2% year over year to $125.6 million.
Non-GAAP operating income of $192.2 million rose 1.1% year over year. Non-GAAP operating profit margin expanded 170 bps to 31.1% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal third quarter with cash and marketable securities of $516.7 million compared with $312.4 million as of Sep 23, 2023. As of Dec 30, 2023, accounts receivables were $217.2 million compared with $271.9 million as of Sep 23, 2023.
In the fiscal third quarter, CRUS reported $313.7 million of cash flow from operations. In the prior-year quarter, it generated $180.9 million of net cash from operations. Free cash flow was $303.8 million in the quarter under review.
The company repurchased 780,517 shares worth $56.9 million in the reported quarter. As of Dec 30, 2023, it had $365.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For fourth-quarter fiscal 2024, management projects revenues between $290 million and $350 million. Combined R&D and SG&A are anticipated to be between $138 million and $144 million. Gross margin is expected 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 Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 31% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 0.1% in the past 60 days to $8.09. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.
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Cirrus Logic (CRUS) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Cirrus Logic Inc. (CRUS - Free Report) reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.89, which beat the Zacks Consensus Estimate by 43.8%. Also, the bottom line increased 20.4% from the prior-year quarter’s $2.40.
Total revenues of $619 million surpassed the Zacks Consensus Estimate by 14.7% and increased 5% year over year. The uptick was driven by solid sales of components shipping and smartphones, owing to strength in orders from its largest customer.
Following the announcement, the company’s shares gained 9.7% in the pre-market trading on Feb 7, 2024. The stock has lost 22.1% in the past year against the sub-industry’s growth of 80.9%.
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 separate categories, High-Performance Mixed-Signal and Audio, in the fourth quarter of fiscal 2021. 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. The segment, which contributed 38.8% to total revenues in the fiscal third quarter, fell 1.2% year over year to $240.4 million.
The Audio segment’s sales increased 9% to $378.6 million and contributed 61.2% to total revenues.
We estimated revenues from the High-Performance Mixed-Signal and Audio segments to be $234.1 million and $303.3 million, respectively, in the fiscal third quarter.
Margins
Non-GAAP gross margin was 51.4%, which expanded 110 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses rose 2% year over year to $125.6 million.
Non-GAAP operating income of $192.2 million rose 1.1% year over year. Non-GAAP operating profit margin expanded 170 bps to 31.1% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal third quarter with cash and marketable securities of $516.7 million compared with $312.4 million as of Sep 23, 2023.
As of Dec 30, 2023, accounts receivables were $217.2 million compared with $271.9 million as of Sep 23, 2023.
In the fiscal third quarter, CRUS reported $313.7 million of cash flow from operations. In the prior-year quarter, it generated $180.9 million of net cash from operations. Free cash flow was $303.8 million in the quarter under review.
The company repurchased 780,517 shares worth $56.9 million in the reported quarter. As of Dec 30, 2023, it had $365.1 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For fourth-quarter fiscal 2024, management projects revenues between $290 million and $350 million. Combined R&D and SG&A are anticipated to be between $138 million and $144 million. Gross margin is expected in the range of 49%-51%.
Zacks Rank & Stocks to Consider
Cirrus Logic currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 31% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 0.1% in the past 60 days to $8.09. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.