The 10-second takeaway
For the quarter ended Sep. 29 (Q2), Cirrus Logic beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins increased, net margins increased.
Cirrus Logic recorded revenue of $193.8 million. The eight analysts polled by S&P Capital IQ expected sales of $180.7 million on the same basis. GAAP reported sales were 91% higher than the prior-year quarter's $101.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.79. The seven earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.51 for Q2 were 200% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.7%, 180 basis points worse than the prior-year quarter. Operating margin was 26.0%, 840 basis points better than the prior-year quarter. Net margin was 18.3%, 720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $230.3 million. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $711.0 million. The average EPS estimate is $2.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 674 members out of 702 rating the stock outperform, and 28 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Cirrus Logic a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cirrus Logic is buy, with an average price target of $52.14.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy