Cirrus Logic (NASDAQ:CRUS) Announces Quarterly Earnings Results

Cirrus Logic (NASDAQ:CRUS) issued its quarterly earnings data on Wednesday. The semiconductor company reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.03, FiscalAI reports. The company had revenue of $459.72 million during the quarter, compared to the consensus estimate of $460.32 million. Cirrus Logic had a net margin of 20.75% and a return on equity of 20.48%. Cirrus Logic’s revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter last year, the company earned $1.51 earnings per share.

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 Down 3.1%

Shares of Cirrus Logic stock traded down $4.17 on Wednesday, hitting $129.42. 995,405 shares of the company’s stock traded hands, compared to its average volume of 674,844. The stock has a market cap of $6.53 billion, a P/E ratio of 16.51 and a beta of 1.18. The firm’s 50-day moving average is $150.60 and its 200 day moving average is $149.16. Cirrus Logic has a 52-week low of $92.02 and a 52-week high of $180.42.

Wall Street Analysts Forecast Growth

CRUS has been the subject of several analyst reports. Weiss Ratings restated a “hold (c+)” rating on shares of Cirrus Logic in a research note on Wednesday, June 24th. Barclays lifted their price target on shares of Cirrus Logic from $120.00 to $140.00 and gave the stock an “equal weight” rating in a research note on Thursday, May 7th. Stifel Nicolaus set a $197.00 price objective on shares of Cirrus Logic in a report on Thursday, May 7th. Zacks Research lowered shares of Cirrus Logic from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, Jefferies Financial Group raised shares of Cirrus Logic to a “buy” rating in a research report on Thursday, June 4th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Cirrus Logic currently has a consensus rating of “Moderate Buy” and a consensus target price of $160.29.

Insider Buying and Selling at Cirrus Logic

In related news, EVP Jeffrey W. Baumgartner sold 1,166 shares of Cirrus Logic stock in a transaction on Monday, July 20th. The shares were sold at an average price of $138.57, for a total value of $161,572.62. Following the completion of the sale, the executive vice president owned 15,239 shares in the company, valued at approximately $2,111,668.23. The trade was a 7.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Brannan sold 6,464 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $144.71, for a total transaction of $935,405.44. Following the completion of the sale, the executive vice president directly owned 7,203 shares in the company, valued at $1,042,346.13. This represents a 47.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 23,465 shares of company stock valued at $3,743,219. Corporate insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Cirrus Logic

A number of institutional investors have recently modified their holdings of CRUS. Invesco Ltd. grew its stake in Cirrus Logic by 133.6% in the fourth quarter. Invesco Ltd. now owns 642,501 shares of the semiconductor company’s stock worth $76,136,000 after purchasing an additional 367,488 shares in the last quarter. Defiance ETFs LLC acquired a new stake in Cirrus Logic during the fourth quarter valued at approximately $38,050,000. Corient Private Wealth LLC lifted its holdings in Cirrus Logic by 1,408.6% during the 4th quarter. Corient Private Wealth LLC now owns 193,777 shares of the semiconductor company’s stock worth $22,963,000 after buying an additional 180,932 shares during the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in Cirrus Logic by 54.9% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 466,766 shares of the semiconductor company’s stock worth $55,312,000 after buying an additional 165,388 shares during the last quarter. Finally, Voloridge Investment Management LLC acquired a new position in shares of Cirrus Logic in the 3rd quarter worth approximately $19,508,000. Institutional investors and hedge funds own 87.96% of the company’s stock.

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.