Cirrus Logic (CRUS) Q2 Earnings Surpass Estimates, Rise Y/Y
Zacks Investment Research | Oct 30, 2019 11:10PM ET
Cirrus Logic (NASDAQ:CRUS) delivered second-quarter fiscal 2020 non-GAAP earnings per share of $1.55, which topped the Zacks Consensus Estimate of 95 cents as well as the year-ago figure of $1.08.
Total revenues of $389 million also surpassed the Zacks Consensus Estimate of $321 million and improved 6.2% year over and 63% sequentially as well. Robust demand for certain components led to higher revenues, above the upper end of the company’s guidance.
Solid customer engagement across its portfolio has been a tailwind. With customers ramping up shipments ahead of product launches, the company benefited from higher sales of smart codecs and amplifiers in wired and wireless headphones. Apart from the mobile market, rising demand for boosted amplifiers in tablets and laptops is a key driver.
Quarterly Details
Segment wise, portable audio product revenues (90% of total revenues) came in at $349.4 million, up 7.8% year over year. However, non-portable audio and other products (10%) decreased 6.4% to $39.5 million.
Cirrus Logic’s largest customer, apparently Apple (NASDAQ:AAPL), accounted for 81% of its sales for the reported quarter.
Non-GAAP gross profit was $208.2 million, which increased 12.4% on a year-over-year basis. Gross margin grew 290 basis points (bps) to 53.5%, driven by favorable product mix. Supply chain efficiencies and cost reductions on certain products were also an upside.
Cirrus Logic’s non-GAAP operating expenses slipped 2.6% to $101 million. Non-GAAP operating income of $107.2 million too surged 31.4%. Moreover, non-GAAP operating margin expanded 600 bps from the year-ago quarter to 28%.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
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