Cirrus Logic Earnings Preview

Cirrus Logic (Nasdaq: CRUS  ) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Wednesday, April 25. Cirrus Logic develops high-precision, analog, and mixed-signal integrated circuits (ICs) for a range of audio and energy markets.

What analysts say:

• Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Cirrus Logic better than competitor Intersil overall. Four out of 19 analysts rate Intersil a buy compared to five out of five for Cirrus Logic.
• Revenue forecasts: On average, analysts predict $110 million in revenue this quarter. That would represent a rise of 20.4% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.30 per share. Estimates range from $0.29 to $0.32.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 95.2% assigning it an outperform rating. The community at large is in line with the All-Stars, with 96.3% awarding it a rating of outperform. Over the past month, Fools have logged just four posts on Cirrus Logic. The tone of their comments has generally been bullish. Even with a robust four out of five stars, Cirrus Logic's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Cirrus Logic's profit has risen year over year by an average of 99.3% over the past five quarters. Revenue has now gone up for three straight quarters.

Now, a look at how efficient management has been at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. Cirrus Logic has seen slipping gross margins year over year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. See how Cirrus Logic has been doing for the last four quarters:

Quarter	Q3	Q2	Q1	Q4
Gross Margin	54.0%	53.5%	51.7%	50.3%
Operating Margin	21.6%	17.6%	15.5%	14.9%
Net Margin	13.7%	11.1%	9.9%	142.6%

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Earnings estimates provided by Zacks.