Cirrus Logic Loses Out On New iPhone Design, Analyst Warns Of Revenue Decline

Benchmark analyst David Williams reiterated a Buy rating on the shares of Cirrus Logic, Inc. CRUS, lowering the price target to $95 from $110.
David remains particularly cautious about Cirrus's confirmation of the elimination of a new socket win in the latest iPhone design. Cirrus is one of the suppliers to Apple Inc. AAPL.
Read More: Why Cirrus Logic Shares Are Getting Hammered After Apple Analyst Remarks
The analyst expects the company's June-quarter revenue to decline 22% sequentially on seasonally weaker handset volume and from the lost sales opportunity on the abandoned socket.
Revenues in the just-reported fourth quarter stand at $372.8 million. Apple contributed 81% of total revenue, down 22% Y/Y to $302 million.
For FY24, the analyst expects revenue of $1.68 billion, down 12% Y/Y below the prior consensus of $1.91 billion and EPS of $5.05 versus the previous $6.38 estimate.
These apart, Cirrus is likely to see higher inventory levels. With excess wafer capacity from the socket cancellation, softer global smartphone unit volumes, and the supply purchase commitments with Global Foundries, inventory should remain above historical levels for at least the next few quarters, the analyst notes.
Price Action: CRUS shares are trading lower by 1.83% at $78 on the last check Monday.

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