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Cirrus Logic (CRUS) to Report Q1 Earnings: What's in Store?

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Cirrus Logic Inc. (CRUS - Free Report) is set to report first-quarter fiscal 2018 results on Aug 2. Last quarter, the company recorded a positive earnings surprise of 23.73%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters, with an average positive surprise of 40.85%.

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 delivered better-than-expected fourth-quarter fiscal 2017 results.  The year-over-year comparisons on both earnings and revenue front were also favorable.

Continued investments in the audio segment have helped Cirrus Logic to come with innovative products time to time. This helps the company in attracting new customers and brings in additional revenues. We expect this factor to positively impact the company’s to-be-reported quarter results as it did in the earlier quarters too. Additionally, synergies from acquisitions and expansion in the LED market are anticipated to drive the fiscal first-quarter results.

Nonetheless, sluggish economic growth, as well as IT spending may affect its fiscal first-quarter performance. Moreover, the company faces competition from the likes of Texas Instruments Inc. (TXN - Free Report) and STMicroelectronics, which also remain a concern for the to-be-reported quarter results.

Earnings Whispers

Our proven model does not conclusively show that Cirrus Logic will likely beat on 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 at least 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 are pegged at 54 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.

Conversely, 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.

Cirrus Logic, Inc. Price and EPS Surprise

 

Cirrus Logic, Inc. Price and EPS Surprise | Cirrus Logic, Inc. Quote

Other Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:

Salesforce.com Inc. (CRM - Free Report) , expected to release earnings on Aug 30, currently has an Earnings ESP of +11.11% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.

Citrix Systems, Inc. (CTXS - Free Report) , slated to release earnings on Aug 2, currently has an Earnings ESP of +1.18% and a Zacks Rank #3.

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