Cirrus Logic (NASDAQ:CRUS – Get Free Report) issued 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 company had revenue of $559.46 million during the quarter, compared to the consensus estimate of $540.37 million. Cirrus Logic had a return on equity of 20.61% and a net margin of 21.00%. Cirrus Logic’s quarterly revenue was down .2% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.83 earnings per share.
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 Down 6.8%
CRUS stock traded down $7.88 during trading hours on Thursday, hitting $108.11. 255,428 shares of the stock traded hands, compared to its average volume of 699,548. The stock has a 50-day simple moving average of $114.20 and a 200 day simple moving average of $138.30. Cirrus Logic has a one year low of $105.10 and a one year high of $180.42. The company has a market cap of $5.42 billion, a P/E ratio of 13.29 and a beta of 1.23.
Analyst Ratings Changes
CRUS has been the subject of a number of recent analyst reports. Barclays lowered Cirrus Logic from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $130.00 to $95.00 in a report on Tuesday, October 20th. KeyCorp cut shares of Cirrus Logic from an “overweight” rating to a “sector weight” rating in a report on Thursday, October 15th. Wall Street Zen cut shares of Cirrus Logic from a “buy” rating to a “hold” rating in a report on Sunday, October 18th. Stifel Nicolaus lowered their price objective on shares of Cirrus Logic from $197.00 to $160.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Finally, Zacks Research cut Cirrus Logic from a “hold” rating to a “strong sell” rating in a report on Friday, August 14th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Cirrus Logic currently has a consensus rating of “Hold” and an average price target of $147.50.
Read Our Latest Stock Report on CRUS
Cirrus Logic News Roundup
Here are the key news stories impacting Cirrus Logic this week:
- Positive Sentiment: Fiscal Q2 revenue was $559.5 million, above the roughly $540 million consensus, while earnings of $2.70 per share topped estimates of about $2.42. Q2 earnings and revenue beat estimates
- Positive Sentiment: Cirrus Logic unveiled a $500 million share repurchase authorization, which may support shareholder returns and per-share results. Buyback announcement and Q2 results
- Neutral Sentiment: The company completed its acquisition of INVENTVM. The announcement provides limited detail on the deal’s expected financial contribution. Fiscal Q3 outlook and INVENTVM acquisition
- Negative Sentiment: Fiscal Q3 2027 revenue guidance of $510 million to $570 million disappointed investors. The Q2 beat was tempered by revenue being slightly lower year over year and EPS declining from $2.83 a year earlier. Weak third-quarter revenue guidance
Insider Transactions at Cirrus Logic
In other Cirrus Logic news, EVP Jeffrey Baumgartner sold 1,166 shares of the business’s stock in a transaction dated Tuesday, October 20th. The shares were 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 over the last quarter. 1.20% of the stock is owned by insiders.
Cirrus Logic Company Profile
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.
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