Cirrus Logic Reports Strong Q1 Earnings, Shares Up 11.7%

Cirrus Logic's recent quarterly earnings show impressive growth in EPS and revenue, signaling potential continued investor confidence. The stock has outperformed the S&P 500 recently, raising questions about future trends as the next earnings report approaches.

Date: 08-09-2024

AI Rating: 8

Earnings Per Share (EPS)

Cirrus Logic reported adjusted EPS of $1.12 for Q1 fiscal 2025, surpassing the Zacks Consensus Estimate by a substantial 80.7% and showing a 67.2% increase from the previous year’s quarter.

Revenue Growth

Total revenues of $374 million exceeded the Zacks Consensus Estimate by 17.7% and represented an 18% year-over-year growth, primarily driven by increased smartphone shipments.

Profit Margins

The company experienced a non-GAAP gross margin of 50.6%, slightly up from 50.4% year-over-year. Additionally, non-GAAP operating profit margin improved to 19% from 14.5% year-over-year, showcasing improved cost management and operational efficiency.

Free Cash Flow (FCF)

Cirrus Logic reported a free cash flow of $77 million for the quarter, indicating solid cash generation capabilities.

Outlook

Management has provided guidance for revenues between $490 million and $550 million for the upcoming quarter. Non-GAAP operating expenses are expected in the range of $125 - $130 million, indicating controlled spending relative to revenue growth.

Investor Sentiment

As estimates have improved significantly in the previous month, investor sentiment appears to be favorable. The stock is on a Zacks Rank #3 (Hold), forecasting an in-line return for the next few months.

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