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Cirrus Logic (CRUS - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and a D for Growth. This chip stocks just posted a beat and raise quarter and that is something that I love to see. It is like 6 months of good news all in one day. Let’s explore more about that idea in this Bull Of The Day article.
Description
Cirrus Logic is a fabless semiconductor supplier, which develops, manufactures and markets analog, mixed-signal, and audio DSP integrated circuits (ICs). The company’s chips are used in a wide range of industrial and consumer markets including portable and non-portable media players, smartphones, tablets, home-theater receivers, automotive entertainment systems, televisions, docking stations, as well as wearables which includes, smart watches, action cameras, smart bands and VR headsets.
Beat And Raise
I like to say that a beat and raise is like 6 months of good news in one day. The idea is the the company just beat earnings estimates, that means the company did great over th last three months.
When the company raises expectations, they are giving you good news that looks forward over the next three months.
A clean beat and raise, like the one CRUS just posted the other week, gives you that 6 months of good news all at once.
I love to see beat and raise reports.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For CRUS, I see a decent history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters. The three most recent quarters were the beats.
The average positive earnings surprise over the last fours quarters works out to be 16%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For CRUS, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.82 to $1.06.
Next quarter has dipped from $0.70 to $0.68.
The full fiscal year 2022 has moved from $5.37 to $5.67.
Next fiscal year has moved to $5.84 and that is up from $5.62.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The forward earnings multiple for CRUS checks in at 15x, which is pretty low given topline growth last quarter came in at 12.8%. The price to book mulitple is 3.1x, and that level will keep value investors interested. The price to sales multiple checks in at 3x.
Margins have moved higher for this stock over the last three quarters and that coupled with topline growth is fueling higher earnings estimates. I see operating margins moving from 16.25% to 17.1% and then to 17.6% over the last three quarters.
Chart
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Image: Bigstock
Bull Of The Day: Cirrus Logic (CRUS)
Cirrus Logic (CRUS - Free Report) is a Zacks Rank #1 (Strong Buy) that sports a D for Value and a D for Growth. This chip stocks just posted a beat and raise quarter and that is something that I love to see. It is like 6 months of good news all in one day. Let’s explore more about that idea in this Bull Of The Day article.
Description
Cirrus Logic is a fabless semiconductor supplier, which develops, manufactures and markets analog, mixed-signal, and audio DSP integrated circuits (ICs). The company’s chips are used in a wide range of industrial and consumer markets including portable and non-portable media players, smartphones, tablets, home-theater receivers, automotive entertainment systems, televisions, docking stations, as well as wearables which includes, smart watches, action cameras, smart bands and VR headsets.
Beat And Raise
I like to say that a beat and raise is like 6 months of good news in one day. The idea is the the company just beat earnings estimates, that means the company did great over th last three months.
When the company raises expectations, they are giving you good news that looks forward over the next three months.
A clean beat and raise, like the one CRUS just posted the other week, gives you that 6 months of good news all at once.
I love to see beat and raise reports.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For CRUS, I see a decent history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters. The three most recent quarters were the beats.
The average positive earnings surprise over the last fours quarters works out to be 16%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For CRUS, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.82 to $1.06.
Next quarter has dipped from $0.70 to $0.68.
The full fiscal year 2022 has moved from $5.37 to $5.67.
Next fiscal year has moved to $5.84 and that is up from $5.62.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The forward earnings multiple for CRUS checks in at 15x, which is pretty low given topline growth last quarter came in at 12.8%. The price to book mulitple is 3.1x, and that level will keep value investors interested. The price to sales multiple checks in at 3x.
Margins have moved higher for this stock over the last three quarters and that coupled with topline growth is fueling higher earnings estimates. I see operating margins moving from 16.25% to 17.1% and then to 17.6% over the last three quarters.
Chart
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote