Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Cirrus Logic's financial results for the third quarter of the fiscal year 2024 came in with record revenue of $619 million and non-GAAP earnings per share of $2.89.</li><li>The noteworthy results were driven by its strategy of leading smartphone audio and their push for improved mixed-signal solutions.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Cirrus Logic's financial results for the third quarter of the fiscal year 2024 came in with record revenue of $619 million and non-GAAP earnings per share of $2.89.The noteworthy results were driven by its strategy of leading smartphone audio and their push for improved mixed-signal solutions.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Cirrus Logic Inc: Progressing Power Management and Conversion Technology! - Major Drivers

<ul><li>Cirrus Logic, Inc. exceeded analyst expectations in terms of revenue as well as earnings, reporting a commendable revenue of $481.1 million, reaching the upper echelon of the guidance range.</li><li>The gross margin exhibited notable strength, with a non-GAAP gross profit of $247 million and a margin of 51.3%, surpassing the high end of the provided guidance range.</li><li>Looking ahead to the Q3 fiscal year '24, their team forecasts revenue between $510 million and $570 million, with a gross margin ranging from 49% to 51%.</li></ul>

Cirrus Logic, Inc. exceeded analyst expectations in terms of revenue as well as earnings, reporting a commendable revenue of $481.1 million, reaching the upper echelon of the guidance range.The gross margin exhibited notable strength, with a non-GAAP gross profit of $247 million and a margin of 51.3%, surpassing the high end of the provided guidance range.Looking ahead to the Q3 fiscal year '24, their team forecasts revenue between $510 million and $570 million, with a gross margin ranging from 49% to 51%.

Cirrus Logic Inc.: Unveiling the Strategy Behind Their Financial Triumph! - Major Drivers

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.</li>
<li>A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. </li>
<li>China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.</li>
</ul>


During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.
A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. 
China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.


More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

<ul><li>Cirrus Logic, Inc. delivered an all-around beat in the most recent quarterly result.</li><li>With the help of its products, shipments, and smartphones, Cirrus Logic achieved revenue of $317 million, which was near the high end of its forecast for the quarter.</li><li>Beyond the laptop market, Cirrus Logic also continues to invest in additional products and client relationships that, in the long run, may increase both its revenue and market variety.</li></ul>

Cirrus Logic, Inc. delivered an all-around beat in the most recent quarterly result.With the help of its products, shipments, and smartphones, Cirrus Logic achieved revenue of $317 million, which was near the high end of its forecast for the quarter.Beyond the laptop market, Cirrus Logic also continues to invest in additional products and client relationships that, in the long run, may increase both its revenue and market variety.

Cirrus Logic Inc.: Exploring The Factors That Broaden Revenue and Market Diversity! - Major Drivers

<ul><li>Cirrus Logic managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>The company achieved a significant revenue of $1.9 billion.</li><li>We give Cirrus Logic a 'Hold' rating with a revised target price.</li></ul>

Cirrus Logic managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.The company achieved a significant revenue of $1.9 billion.We give Cirrus Logic a 'Hold' rating with a revised target price.

Cirrus Logic Inc.: The Role Of Innovation & Other Factors In The Company’s Success – Key Drivers

United States

Cirrus Logic, Inc. is a fabless semiconductor company that develops audio and voice IC and software solutions for mobile communications, automotive entertainment, and consumer audio applications. Cirrus Logic is headquartered in Austin, Texas.

Cirrus Logic (CRUS US)

Cirrus Logic Inc: Progressing Power Management and Conversion Technology! - Major Drivers

Cirrus Logic's financial results for the third quarter of the fiscal year 2024 came in with record revenue of $619 million and non-GAAP earnings...

Baptista Research

Cirrus Logic Inc.: Unveiling the Strategy Behind Their Financial Triumph! - Major Drivers

Cirrus Logic, Inc. exceeded analyst expectations in terms of revenue as well as earnings, reporting a commendable revenue of $481.1 million,...

Baptista Research

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction. During the period, global semi equipment and manufacturing...

Andrew Lu

Cirrus Logic Inc.: Exploring The Factors That Broaden Revenue and Market Diversity! - Major Drivers

Cirrus Logic, Inc. delivered an all-around beat in the most recent quarterly result. With the help of its products, shipments, and smartphones,...

Baptista Research

Cirrus Logic Inc.: The Role Of Innovation & Other Factors In The Company’s Success – Key Drivers

Cirrus Logic managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. The company achieved a significant...

Baptista Research