Cirrus Logic earnings, guidance and buyback expansion
Cirrus Logic (CRUS) packed several updates into its 4 November release. The semiconductor group reported September quarter results, issued new revenue guidance and expanded its existing US$1b share repurchase authorization.
At a share price of US$113.58 after the latest results, Cirrus Logic has seen a 3.04% 1-day share price return and a 3.42% 7-day gain. Its 1-year total shareholder return is slightly negative, while the 3-year total shareholder return of 55.53% points to stronger longer term momentum. This contrasts with the recent 90-day share price decline of 9.08% and the year-to-date share price return of 5.09% lower.
Scan beyond Cirrus Logic and size up other chip players riding similar product cycles with the hand-picked 52 AI infrastructure stocks.
Cirrus Logic shares have risen over the past week, but the 1 year return remains negative while the 3 year gain is strong. Is most of the potential upside already reflected in the current price, or is it not yet fully recognized?
Most Popular Narrative: 20% Undervalued
Cirrus Logic's most followed valuation story pegs fair value at $141.67, comfortably above the latest $113.58 close. This puts the recent guidance and buyback decision in a different light for anyone focused on long term cash generation.
Cirrus Logic is expanding beyond its core smartphone audio business by increasing the value and breadth of its high-performance mixed signal solutions in areas such as camera controllers, power management and sensing. This can widen revenue sources and support earnings resilience as these products are adopted across more device categories.
New mixed-signal products targeting timing, professional audio, industrial imaging and smart-meter analog front ends are described as having lifespans and gross margins above the corporate average in areas such as smart meters, EV charging and grid monitoring. This can gradually raise the proportion of higher margin industrial and infrastructure revenue in the overall mix.
See why 14 investors see Cirrus Logic as 20% undervalued.
Result: Fair Value of $141.67 (UNDERVALUED)
Still, heavy reliance on Apple and the reduced FY27 PC revenue outlook both sit in the background and could easily weaken the Cirrus Logic upside story.
Find out about the key risks to this Cirrus Logic narrative.
Next Steps
If this Cirrus Logic story seems finely balanced between potential and concentration risk, you can get a better understanding of the possible upsides by reviewing the full picture in the 3 key rewards.
Looking for more Cirrus Logic sized opportunities?
If Cirrus Logic has sharpened your thinking, do not stop there. Fresh ideas often come from scanning beyond your usual watchlist and testing new angles.
- Target resilient balance sheets and steady fundamentals by working through our curated list of solid balance sheet and fundamentals (24 results).
- Hunt for mispriced quality by sorting through the 39 high quality undervalued stocks before the crowd closes the gap.
- Stack potential income streams by focusing on companies in the 8 dividend fortresses that may support stronger cash returns.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com