As second-quarter earnings reports begin kick into gear, I can't help but point out that the majority of earnings reports we've covered over the past year have been better than expected. With so many companies reporting during the weeks that comprise earnings season, it's easy for some earnings reports to fall through the cracks.

Each week for the past year, I've taken a look at three companies that could be worth further research after either beating or missing their profit expectations. Today, we'll take a gander at three more companies that reported earnings last week. They may have slid under your radar, but they deserve a look.


Consensus EPS

Reported EPS


Cirrus Logic (NASDAQ:CRUS)




IDEXX Laboratories (NASDAQ:IDXX)








Source: Yahoo! Finance.

Cirrus Logic
Based on Friday's 9% tumble, investors certainly felt that Cirrus Logic's fourth-quarter results were as bad, if not worse, than the company originally forecast. Two weeks ago, Cirrus warned that an audio-chip customer was reducing orders, which sent shockwaves throughout the sector. Cirrus gets a large chunk of its revenue from Apple (NASDAQ:AAPL), so the entire Apple supply chain of companies suffered when Cirrus warned.

For the quarter, Cirrus Logic saw revenue skyrocket 87% to $206.9 million over the year-ago period as profits fell to an adjusted $0.59 per share from $0.75 last year. Cirrus' forecast for the first quarter remained consistent at $150 million to $170 million in revenue, but that's still below the Street's initial forecasts just weeks ago. The $64,000 question then becomes: Should Cirrus really be valued at just seven times forward earnings?

I actually don't think so and believe that traders have emotionalized this into one heck of a bargain! For one thing, Apple's iPhone and iPad sales were both records at 37.4 million and 19.5 million for the second quarter. Although the exponential sales progression of these mobile devices is slowing, their use is growing, which should bode well for Cirrus' revenue stream. Second, Apple is relatively loyal to its chip suppliers. As long as its suppliers remain innovative and can meet its supply demands, Apple is apt to stick with those suppliers. Finally, we're talking about a company that relies on Apple for approximately two-thirds of its revenue. Unless that contract is going away, Cirrus will remain golden.

With $171.6 million in cash, no debt, and at seven times forward earnings, I'm keeping a close eye on Cirrus for a possible entry point.

IDEXX Laboratories
If you've been looking for a great entry point to get into a company that makes a living off the well-being of your pets, then this could be the time to take a closer look at IDEXX Laboratories.

As I discussed earlier this month, pet obesity is a silent epidemic that's slowly crept up on millions of American households. The need for medication and diagnostic scans associated with this disease is only going to increase unless pet owners make a conscientious effort to change the feeding and exercise habits for their pets. IDEXX stands to benefit in either scenario. Pharmaceutical companies need your pet to have an ailment in order to make money. For IDEXX, whether your pet has obesity-related bone pain or is simply at the vet for an annual checkup makes no difference, as there's a chance that IDEXX's scanning diagnostics or information-technology products may be used in either scenario.

In IDEXX's most recent quarter it reported organic revenue growth of 3% as EPS jumped 12% to $0.81. This was, however, $0.01 shy of the Street's expectations as organic growth fell below the company's own projections. I can all but assure you, though, that IDEXX is set up in a perfect niche to benefit from America's growing obsession with owning and domesticating animals. I would consider last week's sell-off the perfect opportunity to dig deeper into IDEXX.

For those of you looking for a glimmer of hope in RadioShack's first-quarter report, keep on looking, because you certainly won't find it here. For the quarter, RadioShack lost a dismal $0.35 per share on an adjusted basis as revenue retreated by 7% to $849 million. Wall Street had been expecting an EPS loss of just $0.10 and revenue of $960.7 million. In short, they weren't even in the ballpark.

RadioShack blamed its monstrous miss on a myriad of problems, including increased competition from Best Buy (NYSE:BBY),, and other Internet retailers, and weak wireless phone subscriptions. Overall gross margin fell 80 basis points during the quarter as lower-margin smartphones sold better than cheaper, but higher margin, phones.

The problem with RadioShack -- and the reason Best Buy's turnaround is working and RadioShack's efforts are failing -- is that it doesn't have the right product. Best Buy's problem was rarely the product; it was the price. With Amazon having to collect sales tax in an increasing number of states and Best Buy willing to price-match Amazon, it's having no trouble bringing customers back into its stores. RadioShack simply doesn't have the image or products that people desire. It hasn't been known as anything more than a small gadgets store over the past decade and it certainly hasn't done anything to change that image with its advertising campaign. In addition, its stores -- and I'm speaking from personal experience here -- are usually in out-of-the-way strip malls.

My suggestion would be to light a candle, because RadioShack's demise appears inevitable.

Foolish roundup
Sometimes an earnings beat or miss isn't as cut-and-dried as it appears. I've given my two cents on what's next for each of these companies -- now it's your turn to sound off. Share your thoughts in the comments section below and consider adding these stocks to your free and personalized watchlist.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, Apple, Cirrus Logic, and RadioShack. The Motley Fool recommends and Apple. 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.