Cirrus Logic's FY 2024 Performance Exceeds Expectations, Sees Growth Opportunities Ahead

Barclays's Blayne Curtis raised their price target on Cirrus Logic (NASDAQ: CRUS) by 15.8% from $95 to $110 on 2024/05/08. The analyst maintained their Strong Buy rating on the stock.

Cirrus Logic, a fabless semiconductor company, recently reported its Q4 and FY 2024 earnings. According to Curtis, "the company saw two better quarters on Apple units, and the rest of the year is set up conservatively." For Q4 2024, Cirrus Logic exceeded expectations with an EPS of $1.24, beating the Zacks Consensus Estimate by a significant 85.1% and surpassing Q4 2023's $0.92 by 34.7%. The company's revenue for the same period was $371.8M, beating the Zacks Consensus Estimate by 16.2% but falling short of Q4 2023's revenue by a mere 0.3%.

Overall, for FY 2024, Cirrus Logic reported an EPS of $6.59 and revenue of $1.79B. The GAAP gross margin for the fiscal year was 51.2%, with operating expenses totaling $470.4M. Looking ahead to Q1 2025, management provided guidance of a revenue range between $290M and $350M, a GAAP gross margin of 49% to 51%, and operating expenses of $118M to $124M.

President and CEO John Forsyth expressed his satisfaction with Cirrus Logic's performance in FY 2024, highlighting the introduction of a third-generation camera controller and the successful launch of new products to support their growing presence in the laptop market. Forsyth also emphasized the completion of the development of their next-generation custom boosted amplifier and first 22-nanometer smart codec, as well as significant investments in future products and intellectual property. He expressed his appreciation for the support and trust of customers, employees, and shareholders, and conveyed excitement about the growth opportunities and product diversification that lie ahead.

In addition to Barclays's Blayne Curtis, other analysts have also updated their ratings for CRUS on May 8, 2024. Susquehanna's Christopher Rolland raised their price target by 20%, from $100 to $120, and maintained their Strong Buy rating on the stock. Tore Svanberg from Stifel Nicolaus raised their price target by 10%, from $100 to $110, while also maintaining a Strong Buy rating. John Vinh from KeyBanc increased their price target by 20%, from $100 to $120, and maintained their Strong Buy rating.

It is worth noting that all top-rated analysts currently rate CRUS as either a Strong Buy or Buy, with no analysts considering it a Hold. Furthermore, no analysts recommend or strongly recommend selling the stock. The consensus forecast among analysts suggests that CRUS's upcoming year will deliver earnings per share (EPS) of $4.92, representing a 50% increase on a year-over-year basis.

Since Cirrus Logic's latest quarterly report on May 7, 2024, the stock price has experienced a 12.2% increase. On a year-over-year basis, the stock has risen by 31%. During this period, CRUS has outperformed the S&P 500, which has seen a 25.4% increase.

Barclays analyst Blayne Curtis is ranked in the top 4% of Wall Street analysts by WallStreetZen, with an average return of 14.8% and a 54.1% win rate. Curtis specializes in the Technology sector.

Cirrus Logic, Inc., headquartered in Austin, Texas, provides low-power and high-precision mixed-signal processing solutions globally. Their product offerings include portable components such as codecs, smart codecs, boosted amplifiers, and digital signal processors. The company's audio products are utilized in various devices, including smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. Cirrus Logic also offers high-performance mixed-signal products for industrial and energy applications, such as haptic drivers, sensing solutions, camera controllers, power conversion and control ICs, and fast-charging ICs.

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