Semiconductor stocks ended the final critical week of the second-quarter earnings season with a mix of winners and losers. Cirrus Logic (CRUS) was one of the winners.
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Audio chip maker Cirrus Logic got a boost from major customer Apple (AAPL) in the second quarter, with 88% of the company’s revenue coming from Apple products, including the iPhone.
Late Tuesday, Austin, Texas-based Cirrus Logic reported better-than-expected profit growth for the first quarter ended June 29.
Cirrus Logic earned an adjusted $1.12 per share on revenue of $374 million for the fourth quarter. Analysts surveyed by FactSet had expected earnings of 61 cents per share on sales of $318 million. Compared to the same period a year ago, Cirrus Logic’s profit rose 67% and revenue increased 18%. Strong demand for iPhone 15 devices boosted Cirrus Logic’s fourth-quarter results.
Cirrus Logic forecast current-quarter revenue of $520 million, based on the midpoint of its guidance. Analysts had been expecting September-quarter revenue of $485 million. Increased production of the upcoming iPhone 16 boosted the September-quarter outlook.
Cirrus Logic expands beyond audio chips
On a conference call with analysts, Cirrus Logic Chief Executive Officer John Forsythe said the company is working to expand its core smartphone audio business. The company is moving into smartphone camera controllers and diversifying into advanced power and battery-related technologies. The chipmaker is also pursuing opportunities in laptops and other devices.
Cirrus Logic shares rose 14.1% in two trading sessions following the release of the quarterly report.
In morning trading on the stock market today, CRUS shares rose 0.6% to 132.38.
According to IBD Stock Checkup, Cirrus Logic is ranked #1 among 39 stocks in IBD’s Fabless Semiconductor industry group. Cirrus Logic has an IBD Composite Rating of 96 out of 99.
Additionally, Cirrus Logic is featured on two IBD stock lists: the IBD 50 and Tech Leaders.
Other semiconductor stock trend news
Other semiconductor stocks that rose this week after reporting better-than-expected earnings gains include Alpha & Omega Semiconductor (AOSL), SiTime (SITM), and Skywater Technology (SKYT).
Semiconductor stocks that fell this week after disappointing quarterly reports included GlobalFoundries (GFS) and Power Integrations (POWI).
Among semiconductor stocks, Taiwan Semiconductor Manufacturing Co. (TSM) said on Friday its July sales rose 45% year-on-year to $7.9 billion on a local-currency basis.
The contract chipmaker profits from producing cutting-edge chips for smartphones and artificial intelligence applications. Taiwan Semiconductor makes chips for companies including Apple, AMD (AMD) and Nvidia (NVDA).
The Philadelphia Semiconductor Index (SOX) was down 0.6% in morning trading on Friday. It has gained 2.1% this week. The SOX includes the 30 largest semiconductor stocks traded in the U.S.
To read more coverage on consumer technology, software and semiconductor stocks, follow Patrick Seitz on X (formerly Twitter) at @IBD_PSeitz.
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