Why Is Cirrus Logic (CRUS) Up 2.7% Since Last Earnings Report?

Core Insights - Cirrus Logic reported strong Q2 fiscal 2025 earnings, with adjusted EPS of $2.25, exceeding estimates by 10.8% and growing 25% year-over-year [2] - Quarterly revenues reached $541.9 million, surpassing estimates by 4.2% and increasing 12.6% year-over-year, driven by demand in the smartphone and laptop markets [3] Financial Performance - The company's largest customer accounted for 90% of total revenues in Q2 [4] - The High-Performance Mixed-Signal segment contributed 42% to total revenues, with revenues rising 13.6% year-over-year to $225.3 million [6] - The Audio segment's sales grew 11.9% to $316.6 million, contributing 58% to total revenues [7] - Non-GAAP gross margin expanded to 52.2%, a 90 basis point increase year-over-year, while non-GAAP operating income grew 17.9% to $156.2 million [8] Balance Sheet and Cash Flow - Cirrus Logic ended Q2 with cash and marketable securities of $478.3 million, up from $312.4 million [9] - The company generated $8.2 million of net cash from operations, a significant improvement from a cash utilization of $22.7 million in the prior-year quarter [10] - Free cash flow for the quarter was $5.5 million, and the company repurchased shares worth $50 million [10] Fiscal Q3 Outlook - Management projects revenues between $480 million and $540 million for Q3 [11] - GAAP gross margin is expected to be in the range of 51-53% [13] - Non-GAAP operating expenses are estimated to be between $124 million and $130 million [14] Market Position and Estimates - Estimates for Cirrus Logic have trended downward, with a consensus estimate shift of -14.07% [15][16] - The company holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [18] Industry Comparison - Cirrus Logic is part of the Zacks Electronics - Semiconductors industry, where Amkor Technology reported revenues of $1.86 billion, reflecting a year-over-year change of +2.2% [19]