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Cirrus Logic Earnings Are on Deck

By Seth Jayson – Updated Apr 10, 2017 at 2:53PM

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Checking expectations

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. 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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Stocks Mentioned

Cirrus Logic Stock Quote
Cirrus Logic
CRUS
$74.71 (5.29%) $3.75

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