Cirrus Logic (NASDAQ:CRUS) Announces Earnings Results

Cirrus Logic (NASDAQ:CRUS) announced its earnings results on Wednesday. The semiconductor company reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $2.42 by $0.28, FiscalAI reports. The firm had revenue of $559.46 million for the quarter, compared to analysts’ expectations of $540.37 million. Cirrus Logic had a return on equity of 19.89% and a net margin of 20.20%. Cirrus Logic’s quarterly revenue was down .2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.83 EPS.

Here are the key takeaways from Cirrus Logic’s conference call:

• Cirrus Logic reported September-quarter revenue of $559.5 million, up 22% sequentially and flat year over year, with non-GAAP EPS of $2.70. Revenue exceeded the midpoint of guidance, driven mainly by higher smartphone volumes and increased content per device.
• For the December quarter, the company forecast revenue of $510 million–$570 million and gross margin of 51%–53%, below the September quarter’s 53.8%. Management attributed the margin decline in part to the fading benefit of previously contracted wafer costs and cited a tight supply environment.
• Management expects smartphone content to keep increasing, with higher attach rates across existing products during successive launch windows over roughly the next 18 months. New products in development—including a fourth-generation camera controller and power ICs—could add further content over time.
• PC-market headwinds have not eased: component shortages and higher prices are weighing on demand, prompting some OEMs to delay launches. Cirrus said this is affecting its near-term outlook, although it believes the delayed designs remain in place and could support growth when demand recovers.
• Cirrus highlighted opportunities beyond smartphones, including AI-enabled PCs, smart glasses and AI gadgets, and industrial imaging; it began receiving production orders for industrial imaging products. It also completed its acquisition of INVENTVM to expand engineering capacity and strengthen its position in wearable and AI-gadget markets.

Cirrus Logic Stock Down 5.0%

Shares of NASDAQ:CRUS opened at $110.23 on Friday. The company has a market cap of $5.52 billion, a P/E ratio of 13.92 and a beta of 1.23. The business has a fifty day simple moving average of $114.19 and a 200-day simple moving average of $138.23. Cirrus Logic has a 52 week low of $105.10 and a 52 week high of $180.42.

Insiders Place Their Bets

In other Cirrus Logic news, EVP Jeffrey Baumgartner sold 1,166 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $107.75, for a total value of $125,636.50. Following the sale, the executive vice president directly owned 11,741 shares of the company’s stock, valued at approximately $1,265,092.75. This trade represents a 9.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,498 shares of company stock worth $401,850 in the last quarter. Corporate insiders own 1.20% of the company’s stock.

Analysts Set New Price Targets

CRUS has been the topic of a number of analyst reports. KeyCorp lowered Cirrus Logic from an “overweight” rating to a “sector weight” rating in a research note on Thursday, October 15th. Susquehanna dropped their price objective on Cirrus Logic from $200.00 to $170.00 and set a “positive” rating for the company in a research report on Wednesday, October 21st. Zacks Research downgraded shares of Cirrus Logic from a “hold” rating to a “strong sell” rating in a research note on Friday, August 14th. Stifel Nicolaus cut their price objective on shares of Cirrus Logic from $197.00 to $160.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, Barclays downgraded shares of Cirrus Logic from an “equal weight” rating to an “underweight” rating and reduced their price objective for the company from $130.00 to $95.00 in a research note on Tuesday, October 20th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $147.50.

About Cirrus Logic

Cirrus Logic, Inc is a fabless semiconductor company that designs high-performance, low-power analog and mixed-signal integrated circuits. Its products are used to process, manage and enhance audio and other signals in electronic devices, including smartphones, tablets, laptops, headphones, smart speakers and automotive systems.

The company’s product portfolio includes audio codecs, digital-to-analog and analog-to-digital converters, amplifiers, haptic controllers, sensing solutions and power-management components.