Cirrus Logic Earnings Are on Deck

Cirrus Logic (Nasdaq: CRUS  ) is expected to report Q3 earnings on Jan. 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cirrus Logic's revenues will grow 133.8% and EPS will increase 230.2%.

The average estimate for revenue is $286.1 million. On the bottom line, the average EPS estimate is $1.42.

Revenue details
Last quarter, Cirrus Logic chalked up revenue of $193.8 million. GAAP reported sales were 91% higher than the prior-year quarter's $101.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.79. GAAP EPS of $0.51 for Q2 were 200% higher than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 51.7%, 180 basis points worse than the prior-year quarter. Operating margin was 26.0%, 840 basis points better than the prior-year quarter. Net margin was 18.3%, 720 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $836.3 million. The average EPS estimate is $3.48.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 740 members out of 768 rating the stock outperform, and 28 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Cirrus Logic a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cirrus Logic is outperform, with an average price target of $52.14.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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