Cirrus Logic (NASDAQ:CRUS) Releases Earnings Results

Cirrus Logic (NASDAQ:CRUS) released its quarterly earnings results on Wednesday. The semiconductor company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.03, FiscalAI reports. Cirrus Logic had a return on equity of 20.86% and a net margin of 21.00%.The company had revenue of $459.72 million for the quarter, compared to analysts’ expectations of $460.32 million. During the same period in the previous year, the business posted $1.51 earnings per share. The business’s quarterly revenue was up 12.9% compared to the same quarter last year.

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

• Record quarterly performance: Cirrus Logic reported record fiscal Q1 revenue of $460 million, up 13% year over year, with non-GAAP EPS of $1.84. Fiscal Q2 revenue is expected to rise to $510 million–$570 million.
• The company cited strong demand for smartphone audio products and an unusually robust multi-year pipeline of high-performance mixed-signal opportunities spanning camera, battery, power, and sensing applications.
• Fiscal-year PC expectations were reduced because of platform supply constraints, memory and component shortages, pricing pressure, and delayed OEM model launches. Management characterized the impact as timing-related rather than a fundamental deterioration in demand.
• Cirrus is broadening beyond smartphones through AI-enabled PC voice solutions, RTX Spark-based PCs, and new smart-meter analog front ends, with potential expansion into energy storage, EV charging, data-center metrology, and grid monitoring.
• Q2 gross margin is expected to receive a temporary benefit from favorable wafer pricing, after which margins should normalize; the company also plans higher fiscal 2027 R&D spending and has no near-term plans to initiate a dividend.

Cirrus Logic Stock Up 0.4%

Shares of NASDAQ CRUS traded up $0.46 during trading on Friday, hitting $123.97. The company had a trading volume of 218,921 shares, compared to its average volume of 645,300. Cirrus Logic has a fifty-two week low of $99.78 and a fifty-two week high of $180.42. The firm has a market capitalization of $6.25 billion, a price-to-earnings ratio of 15.17 and a beta of 1.18. The stock has a fifty day simple moving average of $149.58 and a two-hundred day simple moving average of $149.16.

Analyst Upgrades and Downgrades

CRUS has been the subject of a number of recent analyst reports. KeyCorp reduced their price objective on shares of Cirrus Logic from $190.00 to $170.00 and set an “overweight” rating for the company in a research report on Thursday. Zacks Research lowered shares of Cirrus Logic from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Stifel Nicolaus dropped their target price on Cirrus Logic from $197.00 to $160.00 and set a “buy” rating on the stock in a report on Thursday. Barclays cut their price target on Cirrus Logic from $140.00 to $130.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, Jefferies Financial Group raised Cirrus Logic to a “buy” rating in a research note on Thursday, June 4th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $150.71.

Insider Activity at Cirrus Logic

In other news, EVP Scott Thomas sold 1,300 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $180.04, for a total value of $234,052.00. Following the transaction, the executive vice president directly owned 31,048 shares in the company, valued at approximately $5,589,881.92. This represents a 4.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Brannan sold 6,464 shares of the business’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $144.71, for a total transaction of $935,405.44. Following the completion of the transaction, the executive vice president owned 7,203 shares of the company’s stock, valued at approximately $1,042,346.13. This trade represents a 47.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,465 shares of company stock valued at $2,891,169 over the last 90 days. Corporate insiders own 1.20% of the company’s stock.

Institutional Trading of Cirrus Logic

Institutional investors have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. grew its position in shares of Cirrus Logic by 0.7% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,578,555 shares of the semiconductor company’s stock worth $187,059,000 after buying an additional 11,307 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Cirrus Logic by 7.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,244,258 shares of the semiconductor company’s stock valued at $147,452,000 after acquiring an additional 83,059 shares during the period. Sei Investments Co. raised its position in Cirrus Logic by 2.2% in the third quarter. Sei Investments Co. now owns 926,958 shares of the semiconductor company’s stock worth $116,140,000 after acquiring an additional 20,381 shares in the last quarter. Invesco Ltd. boosted its holdings in Cirrus Logic by 133.6% during the fourth quarter. Invesco Ltd. now owns 642,501 shares of the semiconductor company’s stock worth $76,136,000 after buying an additional 367,488 shares in the last quarter. Finally, Morgan Stanley grew its holdings in shares of Cirrus Logic by 2.9% in the 4th quarter. Morgan Stanley now owns 629,527 shares of the semiconductor company’s stock worth $74,599,000 after acquiring an additional 17,945 shares during the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

Cirrus Logic Company Profile

Cirrus Logic, Inc, headquartered in Austin, Texas, is a fabless semiconductor company specializing in high-precision analog and mixed-signal processing solutions. The firm develops low-power, high-performance audio, voice, and power management integrated circuits, serving prominent consumer electronics OEMs. Its semiconductor devices are designed to enhance audio quality, battery life, and system integration in mobile phones, tablets, wireless headsets and other portable devices.

The company’s product portfolio includes digital-to-analog converters (DACs), analog-to-digital converters (ADCs), audio codecs, power management ICs, voice processors and integrated amplifiers.