NASDAQ$CRUS

Cirrus Logic Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Cirrus Logic's revenue exceeded expectations due to higher smartphone component volumes and development activities progressed across existing and new product categories.

Cirrus Logic reported Q3 FY20 revenue of $374.7 million, exceeding guidance due to higher smartphone component volumes. GAAP earnings per share were $1.13, and non-GAAP earnings per share were $1.41.

  • Revenue for the December quarter exceeded guidance.
  • Experienced higher-than-anticipated volumes for certain components shipping into smartphones.
  • Development activities across existing and new product categories progressed.
  • The company continued to execute on key strategic initiatives.

Headline financials

Total Revenue

$375M

Previous: $324M+15.5%
EPS (adj)

$1.41

Previous: $0.91+54.9%
Capital Expenditures

-$13.3M

Previous: -$23.4M+43.4%
Free Cash Flow

$55.3M

Previous: $6.51M+748.4%
Net Income

$68.5M

Previous: $29.9M+128.9%
Operating Income

$72.7M

Previous: $44.2M+64.3%
Gross Profit

$198M

Previous: $163M+21.0%
Cash & Equivalents

$342M

Previous: $219M+56.1%
Total Assets

$1.65B

Previous: $1.4B+17.9%
Stock-Based Comp

$14.2M

Previous: $11.2M+26.6%

Revenue & EPS history

Cirrus Logic · Revenue · Quarterly

$375M

Q3 2020+15.5%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Cirrus Logic · $2B total across 2 segments · Q4 2026

  • Audio Products
    $1.16B
  • HPMS Products
    $837M

Forward guidance

For the fourth quarter of fiscal year 2020, revenue is expected to range between $250 million and $290 million.

Tailwinds

  • GAAP gross margin to be between 51 percent and 53 percent
  • Combined GAAP R&D and SG&A expenses to range between $115 million and $121 million
  • Includes approximately $14 million in stock-based compensation expense
  • Includes $3 million in amortization of acquired intangibles
  • Company is well positioned for long term success

Headwinds

  • GAAP operating expense is expected to include a restructuring charge of approximately $22 million.
  • The level of orders and shipments during the fourth quarter of fiscal year 2020
  • Customer cancellations of orders
  • The failure to place orders consistent with forecasts
  • Risks and uncertainties

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.4%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+3.0%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+27.0%

Q1 2013

Best reaction

-14.6%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.7%+6.2%+2.7%
Q3 2026+8.3%+12.1%+4.6%
Q2 2026-7.8%-8.4%-4.5%
Q1 2026-7.4%-0.4%+10.2%
Q4 2025+2.6%+1.2%+3.0%
Q3 2025+7.8%+3.0%+7.4%
Q2 2025-6.8%-6.0%-6.0%
Q1 2025+9.9%+17.7%+22.5%
Q4 2024+13.6%+17.9%+32.0%
Q3 2024+14.2%+18.2%+19.8%
Q2 2024+3.9%+6.8%+12.1%
Q1 2024+2.9%+3.3%+3.3%
Q4 2023-6.4%-9.1%-6.3%
Q3 2023+9.8%+14.4%+11.3%
Q2 2023+5.6%+1.6%+11.9%
Q1 2023+5.6%+2.4%-11.6%
Q4 2022+5.6%+0.8%+7.4%
Q3 2022-2.7%-3.0%+3.2%
Q2 2022+1.4%-2.4%+0.0%
Q1 2022-1.5%-4.4%+1.8%
Q4 2021-13.6%-12.7%-9.3%
Q3 2021-4.0%-8.9%-16.7%
Q2 2021+0.6%+7.3%+17.2%
Q1 2021-0.1%-5.7%-8.2%
Q4 2020+2.7%+7.7%+1.7%
Q3 2020+0.5%-7.4%-17.6%
Q2 2020+17.1%+17.2%+23.6%
Q1 2020+15.7%+5.8%+8.8%
Q4 2019+3.6%+4.5%-21.5%
Q3 2019-1.1%+0.1%+9.3%
Q2 2019+10.8%+11.0%+0.0%
Q1 2019-7.2%-1.2%+1.6%
Q4 2018-0.4%+2.0%-3.8%
Q3 2018-7.2%-9.3%-6.4%
Q2 2018+1.3%+2.0%-4.6%
Q1 2018-6.5%-8.8%-6.7%
Q4 2017-0.3%-2.6%+4.4%
Q3 2017-8.8%-8.0%-11.1%
Q2 2017+5.1%+6.7%+9.2%
Q1 2017+22.3%+21.4%+26.0%
Q4 2016+12.4%
Q3 2016+15.9%
Q2 2016+3.3%
Q1 2016+10.6%
Q4 2015+4.2%
Q3 2015+0.4%
Q2 2015-12.7%
Q1 2015-2.3%
Q4 2014+12.5%
Q3 2014-11.9%
Q2 2014-14.6%
Q1 2014-8.7%
Q4 2013-6.3%
Q3 2013-1.8%
Q2 2013-9.1%
Q1 2013+27.0%
Q4 2010-2.3%
Q4 2012-2.3%
Q4 2011-2.3%
Q3 2012-8.1%
Q2 2011+2.4%
Q2 2012+2.4%
Q3 2011-2.2%
Q1 2012-2.2%
Q1 2011-2.2%

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