Semiconductor stocks finished the last big week of second-quarter earnings season with a mixed bag of winners and losers. Cirrus Logic was among the winners.
Audio-chip maker Cirrus Logic got a boost from major customer Apple in the second quarter. It gets 88% of its revenue from Apple products, including the iPhone.
Late Tuesday, Austin, Texas-based Cirrus Logic delivered a beat-and-raise report for its fiscal first quarter ended June 29.
Cirrus Logic earned an adjusted $1.12 a share on sales of $374 million in the June quarter. Analysts polled by FactSet had expected earnings of 61 cents a share on sales of $318 million. On a year-over-year basis, Cirrus Logic earnings jumped 67% while sales increased 18%. Solid demand for iPhone 15 handsets lifted Cirrus Logic's June-quarter results.
For the current quarter, Cirrus Logic forecast sales of $520 million, based on the midpoint of its outlook. Analysts had been modeling $485 million in sales for the September quarter. The production ramp for the upcoming iPhone 16 boosted its September-quarter guidance.
Cirrus Logic Expanding Beyond Audio Chips
On a conference call with analysts, Cirrus Logic Chief Executive John Forsyth said his company is working to expand beyond its core smartphone audio business. It has moved into smartphone camera controllers and is diversifying into advanced power and battery-related technologies. The chipmaker is also pursuing opportunities in laptop computers and other devices.
Cirrus Logic shares surged 14.1% in the first two trading sessions after its quarterly report.
On the stock market today, CRUS stock rose 1% to close at 132.85.
Cirrus Logic ranks first out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. Cirrus Logic has an IBD Composite Rating of 96 out of 99.
Further, Cirrus Logic is on two IBD stock lists: IBD 50 and Tech Leaders.
Other Semiconductor Stocks Moving On News
Other semiconductor stocks moving higher this week on beat-and-raise earnings reports included Alpha and Omega Semiconductor, SiTime and SkyWater Technology.
Semiconductor stocks falling on disappointing quarterly reports this week included GlobalFoundries and Power Integrations.
Elsewhere among semiconductor stocks, Taiwan Semiconductor Manufacturing on Friday reported that sales for the month of July rose 45% year over year in local currency to the equivalent of $7.9 billion.
The contract chipmaker has benefited from production of leading-edge chips for smartphones and artificial intelligence applications. Taiwan Semiconductor makes chips for such companies as Apple, AMD and Nvidia.
The Philadelphia semiconductor index, known as SOX, fell 0.4% on Friday. For the week, it rose 2.2%. The SOX includes the 30 largest semiconductor stocks traded in the U.S.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
