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Cirrus Logic (CRUS) to Report Q4 Earnings: What to Expect?
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Cirrus Logic Inc. (CRUS - Free Report) is set to report fourth-quarter fiscal 2017 results on May 3. Last quarter, the company recorded a positive earnings surprise of 15.03%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 58.14%.
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 third-quarter fiscal 2017 results. The year-over-year comparisons on both earnings and revenue front were also favorable.
Cirrus Logic generates a significant portion of its revenues from Apple Inc. 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 impacted its performance in the to-be-reported quarter. Moreover, the company faces competition from the likes of Texas Instruments Inc. (TXN - Free Report) and STMicroelectronics.
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 Logic is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 59 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cirrus Logic carries a Zacks Rank #3. Though this increases the predictive power of ESP, the company’s 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 is a couple of stocks which, per our model, have the right combination of elements to post an earnings beat this quarter:
Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.00%, and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Cirrus Logic (CRUS) to Report Q4 Earnings: What to Expect?
Cirrus Logic Inc. (CRUS - Free Report) is set to report fourth-quarter fiscal 2017 results on May 3. Last quarter, the company recorded a positive earnings surprise of 15.03%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 58.14%.
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 third-quarter fiscal 2017 results. The year-over-year comparisons on both earnings and revenue front were also favorable.
Cirrus Logic generates a significant portion of its revenues from Apple Inc. 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 impacted its performance in the to-be-reported quarter. Moreover, the company faces competition from the likes of Texas Instruments Inc. (TXN - Free Report) and STMicroelectronics.
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 Logic is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 59 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cirrus Logic carries a Zacks Rank #3. Though this increases the predictive power of ESP, the company’s 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 is a couple of stocks which, per our model, have the right combination of elements to post an earnings beat this quarter:
AMTEK Inc. (AME - Free Report) , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.00%, and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>