Cirrus Logic (NASDAQ:CRUS) Releases Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Cirrus Logic beat earnings expectations: Fiscal Q1 EPS was $1.84, topping estimates by $0.03, while revenue rose 12.9% year over year to roughly $459.7 million, slightly below consensus.
• Management expects continued growth: Fiscal Q2 revenue is projected at $510 million–$570 million, supported by smartphone audio demand and a growing pipeline in camera, battery, power and sensing applications.
• Risks remain in PCs and valuation: The company lowered its fiscal-year PC outlook due to supply constraints, component shortages, pricing pressure and delayed product launches. Shares fell 3.1% after the results, while analysts maintain a “Moderate Buy” consensus and a $160.29 average price target.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) announced 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 business had revenue of $459.72 million for 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%. The company's quarterly revenue was up 12.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $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 NASDAQ CRUS traded down $4.17 during midday trading on Wednesday, hitting $129.42. The stock had a trading volume of 995,405 shares, compared to its average volume of 674,844. The company has a market capitalization of $6.53 billion, a price-to-earnings ratio of 16.51 and a beta of 1.18. Cirrus Logic has a 1-year low of $92.02 and a 1-year high of $180.42. The company has a fifty day moving average price of $150.60 and a 200 day moving average price of $149.16.

Insider Buying and Selling at Cirrus Logic

In other Cirrus Logic news, EVP Andrew Brannan sold 6,464 shares of Cirrus Logic stock in a transaction that occurred 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 transaction, the executive vice president directly owned 7,203 shares of the company's stock, valued at $1,042,346.13. The trade was a 47.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Alexander M. Davern sold 1,000 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $159.00, for a total transaction of $159,000.00. Following the sale, the director owned 20,531 shares of the company's stock, valued at approximately $3,264,429. This represents a 4.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 23,465 shares of company stock worth $3,743,219. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Cirrus Logic

Several hedge funds and other institutional investors have recently made changes to their positions in CRUS. Royal Bank of Canada increased its holdings in Cirrus Logic by 92.3% in the 1st quarter. Royal Bank of Canada now owns 72,134 shares of the semiconductor company's stock valued at $7,189,000 after purchasing an additional 34,629 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Cirrus Logic by 24.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,320 shares of the semiconductor company's stock worth $132,000 after purchasing an additional 263 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Cirrus Logic by 4.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 214,457 shares of the semiconductor company's stock worth $21,372,000 after buying an additional 9,658 shares during the period. Focus Partners Wealth purchased a new stake in shares of Cirrus Logic in the first quarter worth about $361,000. Finally, Geneos Wealth Management Inc. grew its stake in shares of Cirrus Logic by 95.1% in the first quarter. Geneos Wealth Management Inc. now owns 476 shares of the semiconductor company's stock valued at $47,000 after buying an additional 232 shares in the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on CRUS shares. Stifel Nicolaus set a $197.00 price objective on Cirrus Logic in a report on Thursday, May 7th. KeyCorp reduced their target price on Cirrus Logic from $200.00 to $190.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 14th. Zacks Research cut Cirrus Logic from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Cirrus Logic in a research note on Wednesday, June 24th. Finally, Barclays raised their target price on shares of Cirrus Logic from $120.00 to $140.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 7th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $160.29.

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.

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