Cirrus Logic (CRUS) Q1 Earnings Top Estimates, Decrease Y/Y
Cirrus Logic Inc CRUS reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of 67 cents, beating the Zacks Consensus Estimate by 63.4%. However, the bottom line decreased 40.2% from the prior-year quarter’s $1.12 per share.
Total revenues of $317 million surpassed the Zacks Consensus Estimate by 9.1% but decreased 19% year over year. The downtick was primarily due to a reduction in components shipping of smartphones and lower general market sales.
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, 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 contributed 38.3% to total revenues in the fiscal first quarter and declined 13.7% year over year to $121.2 million.
The Audio segment’s sales decreased 15.8% to $195.8 million and contributed 61.7% to the total revenues.
Margins
Non-GAAP gross margin was 50.4%, which contracted 110 basis points (bps) year over year.
Cirrus Logic’s non-GAAP operating expenses decreased 4.8% year over year to $113.8 million.
Non-GAAP operating income of $45.8 million decreased 45% year over year. Moreover, the non-GAAP operating profit margin contracted 570 bps to 14.5% from the year-ago quarter.
Balance Sheet and Cash Flow
The company exited the fiscal first quarter with cash and marketable securities of $388.1 million compared with $445.8 million as of Mar 25, 2023.
As of Jun 24, 2023, accounts receivable were $186 million compared with $150.5 million as of Mar 25, 2023.
In the fiscal first quarter, CRUS reported $39.8 million as net cash used from operations compared with $74.4 million as net cash generated from operations in the prior-year quarter. Free cash outflow was $52.1 million in the quarter under review.
The company repurchased 466,215 shares worth $38 million in the quarter under review. As of Jun 24, 2023, the company had $462.6 million worth of shares remaining under its existing share repurchase authorization.
Outlook
For second-quarter fiscal 2024, the company projects revenues between $430 million and $490 million. Combined R&D and SG&A are projected to be $141 million and $147 million, respectively. 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 InterDigital IDCC, Badger Meter BMI and Woodward WWD. Badger Meter and Woodward sport a Zacks Rank #1 (Strong Buy), whereas InterDigital 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 InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 9.7% in the past 60 days to $3.93.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.
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Badger Meter, Inc. (BMI) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
