Cirrus Logic reported non‑GAAP earnings of $2.83 per share for its fiscal second quarter, a $0.43–$0.45 beat (18%) over the consensus estimate of $2.38–$2.40. Revenue rose to $560.96 million, up $20.57 million (3.8%) from the $540.39 million forecast and 3.5% year‑over‑year. The company’s prior‑year Q2 EPS was $2.25 and revenue was $541.9 million, so the current quarter represents a clear acceleration in earnings and a modest revenue lift.
The earnings beat is largely driven by a 7.8% year‑over‑year increase in the High‑Performance Mixed‑Signal (HPMS) segment, which grew to $242.7 million, and a 0.5% rise in the Audio segment to $318.2 million. HPMS now accounts for 43% of total revenue, up from 42% a year ago, reflecting growing demand in PCs, automotive, industrial, and imaging markets. The company’s adjusted gross margin expanded to 52.5% from 52.2% a year earlier, a margin lift attributable to the higher‑margin HPMS mix and disciplined cost management.
For the third quarter, Cirrus Logic guided revenue of $500 million to $560 million, slightly below the consensus range of $514–$517 million. Management explained that the guidance reflects seasonal softness in the smartphone market and a cautious outlook for the upcoming quarter, while still emphasizing progress in diversifying beyond its flagship Apple customer. The company reiterated its focus on expanding into new applications, noting that HPMS growth is expected to continue.
Market reaction to the results was mixed. Investors welcomed the earnings and revenue beats, but the conservative guidance and the company’s heavy concentration—about 90% of revenue comes from a single customer—dampened enthusiasm. Analysts highlighted the need for continued diversification to mitigate concentration risk.
Looking ahead, Cirrus Logic’s strategy to broaden its product portfolio and enter higher‑margin markets is gaining traction, as evidenced by the HPMS growth and the company’s $40 million share‑repurchase program in the quarter. The earnings beat, combined with a cautious outlook, suggests that while the company remains strong in its core segments, it faces headwinds from customer concentration and seasonal demand shifts. The guidance signals management’s confidence in maintaining profitability through cost discipline while navigating these challenges.
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