Cirrus Logic (NASDAQ:CRUS) Issues Earnings Results, Beats Estimates By $0.28 EPS

Cirrus Logic (NASDAQ:CRUS) announced its quarterly earnings data on Wednesday. The semiconductor company reported $2.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.42 by $0.28, FiscalAI reports. Cirrus Logic had a return on equity of 20.61% and a net margin of 21.00%. The business had revenue of $559.46 million during the quarter, compared to analysts’ expectations of $540.37 million.

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 Trading Up 3.3%

Shares of NASDAQ:CRUS traded up $3.67 during midday trading on Wednesday, reaching $115.99. 1,328,161 shares of the company were exchanged, compared to its average volume of 702,056. The business’s fifty day moving average is $114.10 and its two-hundred day moving average is $138.33. Cirrus Logic has a one year low of $105.10 and a one year high of $180.42. The stock has a market cap of $5.81 billion, a PE ratio of 14.20 and a beta of 1.23.

Analysts Set New Price Targets

Several analysts recently commented on CRUS shares. Barclays downgraded shares of Cirrus Logic from an “equal weight” rating to an “underweight” rating and cut their price objective for the company from $130.00 to $95.00 in a research report on Tuesday, October 20th. Wall Street Zen lowered shares of Cirrus Logic from a “buy” rating to a “hold” rating in a report on Sunday, October 18th. Stifel Nicolaus reduced their target price on Cirrus Logic from $197.00 to $160.00 and set a “buy” rating for the company in a report on Thursday, August 6th. KeyCorp cut Cirrus Logic from an “overweight” rating to a “sector weight” rating in a research report on Thursday, October 15th. Finally, Susquehanna reduced their price target on shares of Cirrus Logic from $200.00 to $170.00 and set a “positive” rating for the company in a research note on Wednesday, October 21st. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $147.86.

Insider Activity

In related news, EVP Jeffrey Baumgartner sold 1,166 shares of the business’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 in the company, valued at approximately $1,265,092.75. The trade was a 9.03% decrease in their ownership of the stock. The transaction 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 valued at $401,850 over the last quarter. Insiders own 1.20% of the company’s stock.

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.