Cirrus Logic’s Sound Reigns Supreme in Q1
Amidst the static of a volatile market, Cirrus Logic Inc. (CRUS) managed to tune its performance to hit the high notes in the first quarter of fiscal 2025. The company reported adjusted earnings per share of $1.12, a crescendo that exceeded the Zacks Consensus Estimate by a staggering 80.7%. This impressive solo was a 67.2% improvement from the prior-year quarter, where the company had hit a respectable 67 cents per share.
The Fruits of Melodic Revenues
Revenue streams harmonized beautifully at $374 million, outstripping the Zacks Consensus Estimate by a substantial 17.7% and soaring a melodious 18% year over year. The symphony of success was orchestrated by strong shipments into the smartphone market, hitting the right notes with investors and analysts alike.
The Customer Crescendo
A single customer played a major key, contributing a crescendo of 88% to the total revenues in the fiscal first quarter. This customer symphony has been the maestro of Cirrus Logic’s performance, conducting a tune that resonated well with the company’s financial health and stability.
A Stock Market Symphony
Following this virtuoso performance, Cirrus Logic’s shares crescendoed 11.9% in aftermarket trading on August 6, 2024. This was a resounding applause to the company’s stellar earnings report, with the stock soaring 39.1% in the past year, outstripping sub-industry growth at 37.7%.
Harmonious Segments
Expanding its repertoire, Cirrus Logic recalibrated its reportable segments, creating distinct categories of High-Performance Mixed-Signal and Audio in the fourth quarter of fiscal 2021. Diversifying its melodies, the company is now tuning into other applications like laptops, gaming, tablets, and AR/VR.
A Symphony of Growth
The crescendo continued as the High-Performance Mixed-Signal segment, contributing 41% to total revenues, rose a melodious 27.9% year over year to $155 million. The Audio segment’s sales hit the right notes as well, growing 11.8% to $218.9 million, contributing 59% to total revenues.
An Orchestra of Estimates
Estimates for the High-Performance Mixed-Signal and Audio segments were pegged at $188.6 million and $124.5 million, respectively, in the fiscal first quarter, painting a vibrant picture of growth and diversification in the company’s operations.
The Beat of Margins
The rhythm of margins remained steady as non-GAAP gross margin hit a sweet spot at 50.6%, up from 50.4% in the prior year quarter. Operating expenses surged slightly by 3.7% year over year to $118 million, driven by increasing variable compensation.
The Sweet Symphony of Profit
Non-GAAP operating income crescendoed to $71.2 million, a stunning growth of 55.2% year over year. The profit margin symphony improved to 19%, from the less resonant figure of 14.5% in the previous quarter.
Financial Harmony and Flow
The score sheet of Cirrus Logic showed a rich tapestry, with cash and marketable securities crescendoing to $517 million at the end of the fiscal first quarter, up from $388.1 million in the previous year. The company’s accounts receivables hit a high note at $190.1 million, a sharp contrast from $286 million in the preceding year.
The Crescendo of Cash
Cash flows orchestrated a beautiful melody, with the company generating $87.2 million as net cash from operations, a stark contrast to the $39.8 million used in the prior-year quarter. The free cash flow hit the right notes at $77 million, a performance that impressed investors and analysts alike.
A Repertoire of Repurchases
The company bought back 361,218 shares worth $41 million in the reported quarter, with $274.1 million in shares left under its existing repurchase authorization. This strategic move added a touch of financial finesse to Cirrus Logic’s impressive performance.
Guiding the Symphony: Fiscal Q2 Projections
Management projects a harmonious range of revenues between $490 million and $550 million for the upcoming quarter. The rhythm of R&D and SG&A are anticipated to create a melodious symphony between $149 million and $155 million, respectively. The gross margin is expected to hit the sweet spot of 50-52%, orchestrating a financial performance that sings to investors and analysts alike.
Epilogue: Performance of Disparate Choirs
Across the financial landscape, we have seen varied performances from different companies. While some have struggled to maintain their tune, Cirrus Logic has managed to hit the right notes, painting a picture of financial success and stability amidst a market filled with cacophonies and discord.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
