Cirrus Logic Beats on EPS but GAAP Results Lag
Cirrus Logic (NAS: CRUS) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Cirrus Logic met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margin expanded, operating margin improved, and net margin dropped.
Cirrus Logic notched revenue of $110.6 million. The five analysts polled by S&P Capital IQ predicted revenue of $110.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $91.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.36. The four earnings estimates compiled by S&P Capital IQ averaged $0.35 per share on the same basis. GAAP EPS of $0.75 for Q4 were 58% lower than the prior-year quarter's $1.80 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 56.4%, 610 basis points better than the prior-year quarter. Operating margin was 18.9%, 390 basis points better than the prior-year quarter. Net margin was 45.9%, 9,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $479.4 million. The average EPS estimate is $1.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 652 members out of 678 rating the stock outperform, and 26 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Cirrus Logic a green thumbs-up, and five 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 $29.00.
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At the time this article was published 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 ofMotley 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.