Earnings Preview: Cirrus Logic

Jul.26.12 | About: Cirrus Logic, (CRUS)

Cirrus Logic Inc. (CRUS) is scheduled to report its Q1 2013 results on July 30, 2012, after the bell. The street expects EPS and revenue of $0.21 and $100.94M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CRUS and the news from its closest competitors.

Cirrus Logic Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.36 EPS, beating analyst estimates of $0.34.

Cirrus Logic Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.21 based on 5 analysts' estimates, down from $0.24 a year ago. Revenue estimates are $100.94M, down from $92.20M a year ago. The median target price by analysts for the stock is $34.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 20, 2012, Needham downgraded the company from Strong Buy to Moderate Buy.
  • On May 31, 2012, Capstone Investments reiterated Buy rating for the company.
  • On April 26, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On April 26, 2012, Needham reiterated Strong Buy rating for the company.
  • On March 22, 2012, Capstone Investments reiterated Buy rating for the company.
  • On February 24, 2012, Oppenheimer upgraded the company from Perform to Outperform.

Latest News

  • On April 25, 2012, Cirrus Logic, Inc. announced that for the fourth quarter of 2012, it expects revenue of $110.6 million and for the first quarter of 2013, revenue is expected to range between $96-$106 million.
  • On April 23, 2012, Cirrus Logic, Inc. announced the passing Of Chairman Mike Hackworth.
  • On January 27, 2012, Cirrus Logic, Inc. announced that for the fourth quarter of 2012, it expects revenues to a range between $108 million and $112 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $104 million for fourth quarter of 2012.

Competitors

Analog Devices (ADI), Broadcom (BRCM), NXP Semiconductors (NXPI), STMicroelectronics (STM), and Texas Instruments (TXN) are considered competitors for Cirrus Logic and the table below provides the key metrics for these companies and the industry.

Cirrus Logic Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CRUS ChartClick to enlarge
(Click to enlarge)

CRUS data by YCharts

Competitors' Latest Development

  • On July 24, 2012, Broadcom Corporation announced that for the third quarter of 2012, it expects net revenue to be $2.0 billion to $2.15 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $2.11 billion for the third quarter of 2012.
  • On July 24, 2012, NXP Semiconductors N.V. announced that for the third quarter of 2012, it expects total revenue to be in the range of $1.083-$1.145 billion, non-GAAP net income in the range of $128-$157 million and Non-GAAP earnings per share (EPS) in the range of $0.50-$0.62. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $1.112 billion, net income of $138 million and EPS of $0.54 for the third quarter of 2012.
  • On July 18, 2012, STMicroelectronics N.V. announced that it has introduced the industry's first digital radio chipset that enables simultaneous reception and processing of AM/FM and multiple digital-radio broadcasts (e.g. DAB+).
  • On July 17, 2012, STMicroelectronics N.V. announced that it has revealed new surge protection devices certified to the automotive industry's specifications.
  • On July 5, 2012, Broadcom Corporation And Emulex Corporation announced that the companies have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California.
  • On July 3, 2012, Dow Jones reported that MIPS Technologies Inc. has signed a $26.5 million agreement that allows Broadcom Corp. to license its patents. Additionally, Broadcom--a semiconductor technology provider and MIPS' customer--has extended its license of the Company's architecture and core licenses.
  • On July 2, 2012, STMicroelectronics NV and Harbin Institute of Technology (HIT), a Chinese university, announced the opening of a joint laboratory to encourage innovation in electronics.
  • On June 28, 2012, NXP Semiconductors N.V. announced the appointment of Sean Hunkler as Executive Vice President and co-general manager of operations effective July 16. He takes over from Peter Kelly, NXP's new Chief Financial Officer (NASDAQ:CFO).
  • On June 28, 2012, STMicroelectronics N.V. announced that it has expanded its sensor portfolio with an ultra-compact, high-performance e-compass module. The integration of motion and magnetic sensing in a tiny 3x3x1mm package opens new possibilities for advanced navigation and location-based services in ever-sleeker portable consumer devices.
  • On June 27, 2012, Broadcom Corporation announced that Wi-Fi Alliance selected Broadcom for its Wi-Fi CERTIFIED Passpoint Test Bed.
  • On June 26, 2012, STMicroelectronics N.V. announced that it is now delivering the first samples of its new STM32 F3 series of microcontrollers to OEM customers, enabling early evaluation of this new line in ST's product family featuring the ARMR Cortex-M core embedded.
  • On June 14, 2012, STMicroelectronics NV announced the introduction of the "Mystique" family of products, a high-speed active-protocol bi-directional converters for managing audio and video signals between DisplayPort and HDMI, two digital-display interface technologies used in computer and consumer electronics.
  • On June 13, 2012, STMicroelectronics N.V. and Wasion Group announced the availability of NFC-enabled post-pay power meters for deployment in the municipal grid of ChongQing, China.
  • On June 11, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it currently expects revenue to be in the range of $3.28-3.42 billion compared with the prior range of $3.22-3.48 billion and EPS to be in the range of $0.32-0.36 compared with the prior range of $0.30-0.38.
  • On May 30, 2012, STMicroelectronics N.V. announced that during Annual General Meeting which was held in Amsterdam on May 30, 2012 it has approved the distribution of a cash dividend of USD 0.40 per share, to be paid in four equal quarterly installments, in June, August and December 2012 (November 29, 2012 in Europe) and February 2013 to shareholders of record in the month of each quarterly payment.
  • On May 23, 2012, Analog Devices, Inc. announced that for third quarter of 2012, it expects revenues to grow sequentially in the range of 1% to 4% and diluted earnings plan to be in the range of $0.54-$0.58. The Company reported revenue of $675 million in second quarter of 2012.
  • On May 22, 2012, Analog Devices, Inc. announced that the Board of Directors has declared a cash dividend of $0.30 per outstanding share of common stock. The dividend will be paid on June 12, 2012 to all shareholders of record at the close of business on June 1, 2012.
  • On May 1, 2012, Broadcom Corporation announced that for second quarter of 2012, it expects net revenue to be roughly $1.9 billion to $2.0 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $1.9 billion for second quarter of 2012.
  • On April 26, 2012, NXP Semiconductors N.V. announced that for second quarter of 2012, it expects total revenue to be in the range of $1.035-$1.071 billion, non-GAAP net income in the range of $97-$108 million and Non-GAAP earnings per share in the range of $0.38-$0.43. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $1.008 billion, net income of $86 million and EPS of $0.34 for second quarter of 2012.

Technical Overview


The stock has a market capitalization of $1.71B and is currently trading at $26.57 with a 52 week range of $12.52 - $31.23. The stock's year-to-date performance has been 67.63%. It is currently trading above 200 SMA, but below 20 and 50 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.