Cirrus Logic Inc (NASDAQ: CRUS) reported third-quarter financial results that exceeded consensus analyst forecasts, along with an upbeat sales outlook for the upcoming quarter. The company's quarterly earnings per share (EPS) reached $2.97, clearly surpassing the analyst consensus estimate of $2.44 per share. Additionally, Cirrus Logic posted quarterly revenue of $580.62 million, which outpaced the consensus forecast of $533.89 million.
Looking ahead, Cirrus Logic projects sales for the fourth quarter in a range between $410 million and $470 million. This guidance was provided on Tuesday and stands well above the prevailing market estimate of $384.29 million. The strong results and optimistic revenue forecast reflect robust customer demand, particularly in the smartphone component segment.
John Forsyth, president and chief executive officer of Cirrus Logic, attributed the solid performance to higher-than-anticipated demand for components used in smartphones coupled with a favorable mix of end devices in the product portfolio. This combination enabled the company to achieve revenue above the higher boundary of its guidance range for the quarter ending in December.
The encouraging financial results contributed to an increase in Cirrus Logic’s shares, which rose by 4.2% to $129.86 during pre-market trading following the earnings announcement.
In response to the strong quarterly performance, equity analysts have revised their price targets for Cirrus Logic. Benchmark analyst David Williams reaffirmed his Buy rating on the stock and raised the price target from $150 to $160, signaling confidence in the company’s financial trajectory. Similarly, Tore Svanberg of Stifel maintained his Buy recommendation and adjusted the price target upward from $150 to $163.
These adjustments reflect a positive reevaluation of Cirrus Logic's near-term prospects following the company’s strong quarter and optimistic sales outlook.
The company’s improved market valuation and the analysts’ bullish stance suggest a healthy investor perception of Cirrus Logic’s positioning within the semiconductor sector, particularly in supplying components for smartphones. However, as with any technology firm reliant on consumer electronics demand, ongoing sales performance will need to be monitored closely to confirm sustained momentum.
As of the latest trading, Cirrus Logic’s stock is valued at approximately $130, representing a notable gain linked to the earnings release and subsequent analyst revisions.