So, the Wheels Came Off Cirrus Logic's Bus

Seth Jayson, The Motley Fool
Updated

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 30 (Q4), Cirrus Logic met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank significantly.


Margins dropped across the board.

Revenue details
 Cirrus Logic logged revenue of $206.9 million. The six analysts polled by S&P Capital IQ expected revenue of $207.7 million on the same basis. GAAP reported sales were 87% higher than the prior-year quarter's $110.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.59. The eight earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.59 for Q4 were 64% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.39 for Q4 were 47% lower than the prior-year quarter's $0.74 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 40.4%, much worse than the prior-year quarter. Operating margin was 16.3%, 260 basis points worse than the prior-year quarter. Net margin was 12.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $177.2 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $788.8 million. The average EPS estimate is $2.56.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 896 members out of 925 rating the stock outperform, and 29 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 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 outperform, with an average price target of $39.25.

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The article So, the Wheels Came Off Cirrus Logic's Bus originally appeared on Fool.com.

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.

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