Cirrus Logic Lower, Even as Profit and Revenue Beat Estimates

Cirrus Logic reported quarterly profit advanced 69% on 30% higher revenue, both beating the consensus estimates of Wall Street analysts.
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Cirrus Logic,  (CRUS) - Get Report the Austin chipmaker, reported fiscal-third-quarter net income advanced 69% on 30% higher revenue, with both figures beating the consensus estimates of Wall Street analysts.

The company also said the board had authorized management to buy back as much as an additional $350 million of common stock. Some $55 million remains from the previous authorization made in January 2019.

For the quarter ended Dec 26, Cirrus l.ogic earned $1.91 a share, compared with $1.13 in the year-earlier quarter. The latest adjusted earnings were $2.13 a share.

Revenue reached $485.8 million From $374.7 million.

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of $1.60 a share, or an adjusted $1.86, on revenue of $460.9 million.

Third-quarter gross margin on a GAAP and adjusted basis came in at 51.8%.

Driving the third quarter was "strong demand for products shipping in recently introduced smartphones," Chief Executive John Forsyth said in a statement, 

For the fiscal 2021 fourth quarter, Cirrus Logic estimated revenue in a range of $280 million to $320 million. Gross margin is forecast between 50% and 52%.

The FactSet survey is calling for fourth-quarter revenue of $298.3 million.

"Given the strength of the current smartphone market cycle, and the new-product introductions in the pipeline, we are excited about the outlook for the company," Forsyth said.

At last check Cirrus Logic shares were trading down 8% at $90.02. They closed the regular Monday trading session up 4.5% at $97.86.

The stock on Jan. 23 had touched a 52-week high above $103. That was more than twice the 52-week low above $47, set in mid-March.