We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cirrus Logic (CRUS) to Report Q3 Earnings: What's in Store?
Read MoreHide Full Article
Cirrus Logic Inc. (CRUS - Free Report) is set to report third-quarter fiscal 2017 results on Feb 1. Last quarter, the company recorded a positive earnings surprise of 30.5%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company posted better-than-expected second-quarter fiscal 2017 results. The year-over-year comparisons on both the counts were also favorable.
Notably, as per revenue segments, Portable audio product revenues accounted for approximately 89% of the total revenue last quarter. Also, Cirrus Logic generates a significant portion of its revenues from Apple Inc. (AAPL - Free Report) . This means that there is always a risk of losing an Apple design contract, which will significantly hurt the company’s financials.
We remain cautious about the company as the current global economic downturn might have an impact on its performance in the soon-to-be reported quarter. Moreover, the company faces competition from the likes of Texas Instruments Inc. and STMicroelectronics, which remains a headwind.
Nonetheless, continued investments in the audio segment are expected to have a positive impact in the long run. Additionally, synergies from acquisitions and expansion in the LED market continue to drive growth.
Our proven model does not conclusively show that Cirrus Logic will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for Cirrus Logicis 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.53 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cirrus Logic has a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Moody's Corporation (MCO - Free Report) , with an Earnings ESP of +0.89% and a Zacks Rank #3
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cirrus Logic (CRUS) to Report Q3 Earnings: What's in Store?
Cirrus Logic Inc. (CRUS - Free Report) is set to report third-quarter fiscal 2017 results on Feb 1. Last quarter, the company recorded a positive earnings surprise of 30.5%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company posted better-than-expected second-quarter fiscal 2017 results. The year-over-year comparisons on both the counts were also favorable.
Notably, as per revenue segments, Portable audio product revenues accounted for approximately 89% of the total revenue last quarter. Also, Cirrus Logic generates a significant portion of its revenues from Apple Inc. (AAPL - Free Report) . This means that there is always a risk of losing an Apple design contract, which will significantly hurt the company’s financials.
We remain cautious about the company as the current global economic downturn might have an impact on its performance in the soon-to-be reported quarter. Moreover, the company faces competition from the likes of Texas Instruments Inc. and STMicroelectronics, which remains a headwind.
Nonetheless, continued investments in the audio segment are expected to have a positive impact in the long run. Additionally, synergies from acquisitions and expansion in the LED market continue to drive growth.
Cirrus Logic, Inc. Price and EPS Surprise
Cirrus Logic, Inc. Price and EPS Surprise | Cirrus Logic, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Cirrus Logic will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for Cirrus Logicis 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.53 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cirrus Logic has a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
CVS Health Corporation (CVS - Free Report) , with an Earnings ESP of +0.60% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody's Corporation (MCO - Free Report) , with an Earnings ESP of +0.89% and a Zacks Rank #3
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>