Cirrus Logic, Inc. Beats Q2 Estimates; Shares Fall 7% Anyhow

Source: Cirrus Logic.

Cirrus Logic (NASDAQ: CRUS  ) , which designs semiconductors for digital and analog signal processing, just reported results for the first quarter of fiscal year 2015. In after-hours trading, Cirrus shares fell as much as 7.6% on the news. Heading into this report, Cirrus shares had gained a market-beating 25% over the previous three months.

First-quarter sales fell 1.6% year-over-year to $152.6 million. Adjusted earnings plunged by 34%, landing at $0.37 per diluted share. The non-GAAP earnings exclude a $0.04 charge per share related to the pending acquisition of audio processor rival Wolfson Electronics.

Analysts were looking for earnings of $0.30 per share on $148 million in sales. Cirrus exceeded both of these consensus estimates.

Looking ahead, Cirrus expects revenue of roughly $185 million in the second quarter. That figure is in line with analyst projections. Gross margins and operating expenses are expected to stay relatively flat compared to the first quarter.

Doing the math on this guidance, Cirrus implies roughly $0.29 of GAAP earnings per share, or something like $0.50 per share in non-GAAP terms. Analysts are currently projecting adjusted earnings around $0.54 per share in this period.

"We are pleased with our Q1 financial results as we experienced strong demand for our custom and general market portable audio products across our customer base," said Cirrus CEO Jason Rhode in a prepared statement. "With a robust pipeline of innovative products and the pending acquisition of Wolfson, we are strengthening the company's position as a market leader in audio with a comprehensive product portfolio, differentiated software capabilities and a top-tier customer base."

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. There's one small company making Apple's gadget possible, and its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3041699, ~/Articles/ArticleHandler.aspx, 9/16/2014 4:02:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement