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 - Free Report) delivered third-quarter fiscal 2020 non-GAAP earnings per share of $1.41, which topped the Zacks Consensus Estimate of $1.12 as well as the year-ago figure of 91 cents.
Total revenues of $374.7 million also surpassed the Zacks Consensus Estimate of $346 million and improved 16% year over year as well. Higher-than-expected volumes of boosted amplifiers, haptic drivers and smart codecs shipping in smartphones drove revenues.
However, on a sequential basis, revenues declined 4% due to reduction in sales to certain Android customers, ahead of product launches in the first half 2020.
Quarterly Details
Segment wise, portable audio product revenues (92% of total revenues) came in at $344.87 million, up 19.5% year over year. However, non-portable audio and other products (8%) decreased 16.4% to $29.8 million.
Cirrus Logic’s largest customer, apparently Apple, accounted for 83% of its sales for the reported quarter.
Non-GAAP gross profit of $197.8 million increased 21% on a year-over-year basis. Non-GAAP gross margin expanded 240 basis points (bps) to 52.8%, driven by a favorable product mix. Supply chain efficiencies and cost reductions on certain products were also an upside
Cirrus Logic’s non-GAAP operating expenses inched up 2.8% to $103.2 million. Non-GAAP operating income of $94.6 million too surged 50.1%. Moreover, non-GAAP operating margin expanded 590 bps from the year-ago quarter to 25.3%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
The company exited the fiscal third quarter with cash and cash equivalents of $342.3 million compared with $221.9 million at the end of the earlier reported quarter.
Accounts receivables were $175.9 million compared with $207.96 million in the last reported quarter. Notably, the company did not have any long-term debt during the quarter under review.
Cash flow from operations was $128.7 million in the quarter. As of Dec 28, 2019, the company has $170 million remaining under its share repurchase authorization.
Outlook
The company expects fourth-quarter fiscal 2020 revenues between $250 million and $290 million, indicating a decline of 28% sequentially but an improvement of 13% year over year at the midpoint.
The guidance provided suggests strong demand for certain components shipping in smartphones, offset by normal seasonal trends.
Zacks Rank and Other Stocks to Consider
Currently, Cirrus Logic has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are Perficient (PRFT - Free Report) , Synopsys, Inc. (SNPS - Free Report) and ManTech International Corporation , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Perficient, Synopsys and ManTech is currently pegged at 11.75%, 12.76% and 8%, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Cirrus Logic (CRUS) Q3 Earnings Surpass Estimates, Rise Y/Y
Cirrus Logic (CRUS - Free Report) delivered third-quarter fiscal 2020 non-GAAP earnings per share of $1.41, which topped the Zacks Consensus Estimate of $1.12 as well as the year-ago figure of 91 cents.
Total revenues of $374.7 million also surpassed the Zacks Consensus Estimate of $346 million and improved 16% year over year as well. Higher-than-expected volumes of boosted amplifiers, haptic drivers and smart codecs shipping in smartphones drove revenues.
However, on a sequential basis, revenues declined 4% due to reduction in sales to certain Android customers, ahead of product launches in the first half 2020.
Quarterly Details
Segment wise, portable audio product revenues (92% of total revenues) came in at $344.87 million, up 19.5% year over year. However, non-portable audio and other products (8%) decreased 16.4% to $29.8 million.
Cirrus Logic’s largest customer, apparently Apple, accounted for 83% of its sales for the reported quarter.
Non-GAAP gross profit of $197.8 million increased 21% on a year-over-year basis. Non-GAAP gross margin expanded 240 basis points (bps) to 52.8%, driven by a favorable product mix. Supply chain efficiencies and cost reductions on certain products were also an upside
Cirrus Logic’s non-GAAP operating expenses inched up 2.8% to $103.2 million. Non-GAAP operating income of $94.6 million too surged 50.1%. Moreover, non-GAAP operating margin expanded 590 bps from the year-ago quarter to 25.3%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
Balance Sheet and Cash Flow
The company exited the fiscal third quarter with cash and cash equivalents of $342.3 million compared with $221.9 million at the end of the earlier reported quarter.
Accounts receivables were $175.9 million compared with $207.96 million in the last reported quarter. Notably, the company did not have any long-term debt during the quarter under review.
Cash flow from operations was $128.7 million in the quarter. As of Dec 28, 2019, the company has $170 million remaining under its share repurchase authorization.
Outlook
The company expects fourth-quarter fiscal 2020 revenues between $250 million and $290 million, indicating a decline of 28% sequentially but an improvement of 13% year over year at the midpoint.
The guidance provided suggests strong demand for certain components shipping in smartphones, offset by normal seasonal trends.
Zacks Rank and Other Stocks to Consider
Currently, Cirrus Logic has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are Perficient (PRFT - Free Report) , Synopsys, Inc. (SNPS - Free Report) and ManTech International Corporation , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Perficient, Synopsys and ManTech is currently pegged at 11.75%, 12.76% and 8%, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>