Buoyed by a strong quarterly earnings report and resulting analyst price target lifts, audio processor specialist Cirrus Logic(NASDAQ: CRUS) was an outperformer of a stock in recent days. As of early Friday morning the company's share price had increased more than 17% week to date, according to data compiled by S&P Global Market Intelligence.
A dynamite quarter for the specialty tech supplier
Cirrus posted its results for its fiscal fourth quarter of 2024, ended March 30, on Tuesday, and the investor reaction was strong and immediate. That's little wonder, as the company crushed analyst estimates on both the top and bottom lines. Non-GAAP (adjusted) net income was a particularly notable line item, as it soared 31% higher year over year to land at over $69 million.
As frequently occurs when one of the stock market's companies crushes it in a quarter, analysts wasted no time getting officially more bullish on Cirrus.
Several raised their price targets for the stock. Among these was TD Cowen's Matthew Ramsay, who made a 15% hike by changing his level to $115 per share from the preceding $100 while maintaining his buy recommendation. In Ramsay's post-earnings analysis, he noted that the company's fourth quarter is typically a soft one for its business; it bucked this trend thanks to higher shipments from its No. 1 customer, Apple.
Diversification in the cards?
According to Ramsay's take, Apple comprises 86% of Cirrus' revenue. While that is a bit of a concern -- it's never ideal to be heavily dependent on just one client -- the mighty King of Cupertino surely won't go out of business anytime soon. Cirrus management has stated it wants to diversify away from the iPhone maker; investors should keep an eye on its progress with this effort.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Cirrus Logic. The Motley Fool has a disclosure policy.
