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Cirrus Logic Shares Soar on Strong Q4 Results Beat

Published 07/05/2024, 21:22
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AUSTIN - Cirrus Logic, Inc. (NASDAQ: NASDAQ:CRUS) reported a significant beat on its fourth-quarter earnings, surpassing analyst estimates with an adjusted EPS of $1.24, a notable $0.60 higher than the expected $0.64. The company's revenue also exceeded forecasts, coming in at $371.8 million against the consensus estimate of $316.11 million.

The robust financial performance is attributed to the company's disciplined execution and strategic investments in new products, as detailed by President and CEO John Forsyth.

"We introduced a third-generation camera controller, ramped new products in support of our growing momentum in the laptop market, and completed development of our next-generation custom boosted amplifier and first 22-nanometer smart codec," Forsyth said.

These initiatives contributed to a year-over-year increase in adjusted earnings per share, signaling a strong year for Cirrus Logic.

Investors reacted positively to the news, with the stock price climbing 8.3% as the market responded to the earnings beat.

The company's forward-looking guidance also paints an optimistic picture, with expected Q1 2025 revenue ranging between $290 million and $350 million, compared to the analyst consensus of $302.7 million. This guidance suggests a midpoint of $320 million, which is above the consensus estimate, further buoying investor sentiment.

Cirrus Logic's growth is not only reflected in its earnings but also in its gross margin, which remained stable at 51.9% for non-GAAP results. The company's continued investment in innovative technologies and product diversification is expected to drive future growth, as emphasized by Forsyth's appreciation for the support and trust from customers, employees, and shareholders.

Looking ahead to the first quarter of fiscal year 2025, Cirrus Logic forecasts non-GAAP operating expenses to range between $118 million and $124 million. This outlook, coupled with the company's performance in the fourth quarter, indicates a sustained focus on operational efficiency and product leadership in the mixed-signal processing solutions market.

Cirrus Logic's achievements in the fourth quarter and its positive guidance for the upcoming quarter underscore the company's strong position and potential for further growth in its industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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