Cirrus Logic (CRUS) Q3 Earnings & Revenues Top Estimates, Up Y/Y

Core Insights - Cirrus Logic Inc. (CRUS) reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.89, exceeding the Zacks Consensus Estimate by 43.8% and increasing 20.4% from the prior-year quarter's $2.40 [1] - Total revenues reached $619 million, surpassing the Zacks Consensus Estimate by 14.7% and reflecting a 5% year-over-year increase, driven by strong sales in components for smartphones [1] Segment Details - The company has two main segments: High-Performance Mixed-Signal and Audio, with the High-Performance Mixed-Signal segment contributing 38.8% to total revenues at $240.4 million, down 1.2% year over year [2] - The Audio segment's sales increased by 9% to $378.6 million, contributing 61.2% to total revenues [2] Margins - Non-GAAP gross margin was 51.4%, expanding by 110 basis points year over year [3] - Non-GAAP operating income rose 1.1% year over year to $192.2 million, with an operating profit margin of 31.1%, up 170 basis points from the previous year [3] Balance Sheet and Cash Flow - The company ended the fiscal third quarter with cash and marketable securities of $516.7 million, up from $312.4 million as of September 23, 2023 [4] - Cash flow from operations was reported at $313.7 million, compared to $180.9 million in the prior-year quarter, with free cash flow at $303.8 million [4] - The company repurchased 780,517 shares worth $56.9 million during the quarter, with $365.1 million remaining under its share repurchase authorization [4] Outlook - For the fourth quarter of fiscal 2024, management projects revenues between $290 million and $350 million, with combined R&D and SG&A expenses expected to be between $138 million and $144 million [5] - Gross margin is anticipated to be in the range of 49%-51% [5]