Yesterday, Cirrus Logic, Inc. (CRUS) announced its fourth straight quarter with a positive earnings surprise, and also saw revenue grow by more than 100% on a year-over-year basis.
Today, shares of the company advanced approximately 2.3%, which is pretty good considering that the market took a sharp turn downward late Wednesday. The performance was enough for CRUS to join the Zacks #1 Rank Top Performers List. Volume more than doubled to around 14.25 million shares, compared to the daily average of around 6.75 million.
We’ve been mentioning the semiconductor industry quite a bit lately in the Top Performers article. The space has performed well as the economy moves (slowly) forward. Plus, it is well represented on the Zacks #1 Rank List.
Other than CRUS, there are 6 names from the space in the group: Amtech Systems, Inc. (ASYS), Entropic Communications (ENTR), Infineon Technologies (IFNNY), IXYS Corporation (IXYS), Lattice Semiconductor (LSCC) and Silicon Motion Technology Corporation (SIMO).
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of innovative customers. The company delivers highly optimized products for a variety of audio and energy-related applications.
Fiscal First Quarter
Cirrus Logic earned 27 cents per share in its fiscal first quarter, which inched past the Zacks Consensus Estimate of 26 cents by 3.85%. Over the past 4 quarters, the company has amassed an average surprise of 7.6%. But looking even further back than the last 4 quarters, CRUS has an impressive penchant for performing at or above expectations.
Revenue surged 118% year over year to $81.9 million, compared to $37.5 million. It was also up by 31% sequentially. CRUS stated that revenue growth in portable audio was supported by revenue growth from several other audio and energy-related product lines.
Looking toward the fiscal second quarter, Cirrus Logic expects revenue between $98 million and $106 million. The Zacks Consensus Estimate for the quarter currently calls for 29 cents per share, versus 9 cents a year earlier.
“With a great second quarter ahead of us, and our newly released products being very well received by customers, we believe that the future for Cirrus Logic remains very bright,” said CRUS President/CEO Jason Rhode.
Earnings Estimates for Cirrus Logic
There are only 4 total estimates for each this fiscal year and next. Since the report yesterday, there’s been no movement in expectations. We’ll have to wait and see what type of impact this quarter will have. However, CRUS is a Zacks #1 Rank stock for a reason, and that’s because there was an upward trajectory in earnings estimates even before its quarterly announcement.
The Zacks Consensus Estimate for this fiscal year, which ends March 2011, is $1.06 per share. It’s been stuck at that level for the past 30 days, but is up nearly 2% from 2 months ago. If you really want to be dramatic, the guidance has surged by 68% from 3 months ago.
Meanwhile, the Zacks Consensus Estimate for next fiscal year, ending March 2012, hasn’t moved in the past month either. However, the $1.15 per share guidance is up 4.5% in 2 months and 55.4% in 3 months. It also suggests a year-over-year profit improvement of 8.5%.
