Cirrus Logic, Inc.
CRUS
is slated to release third-quarter fiscal 2021 results on Feb 1.
For the third quarter of fiscal 2021, the company projects revenues between $440 million and $480 million. At the midpoint, the guidance suggests growth of 23% year on year and 32% sequentially. The Zacks Consensus Estimate is pegged at $462.75 million, indicating a year-over-year increase of 23.51%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $1.87 per share, suggesting a 32.62% rise year on year.
The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 47.2%.
Cirrus Logic, Inc. Price and EPS Surprise
In the last reported quarter, it delivered non-GAAP earnings per share of $1.26, which outpaced the Zacks Consensus Estimate of 89 cents. However, the bottom-line figure declined 18.7% on a year-over-year basis.
Total revenues of $347.3 million also surpassed the Zacks Consensus Estimate of $310.5 million but declined 10.7% year over year.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Demand for components in smartphones, wearables and tablets is expected to have remained strong during Cirrus Logic’s fiscal third quarter. This, in turn, might have been a positive for the company’s top line.
Solid customer engagement across its portfolio is anticipated to have been a tailwind as well.
Buoyant demand for smart codecs, boosted amplifiers and haptic drivers in the android market is also expected to have been a key growth catalyst.
The company’s efforts to increase its gross margin are expected to have aided the third-quarter performance. Management expects gross margin to remain around 50%.
However, intense competition, adverse currency translations and a volatile macroeconomic environment were primary challenges for the company during the quarter under review.
What Our Model Says
Our proven model predicts an earnings beat for Cirrus Logic this season. The combination of a positive
Earnings ESP
and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our
Earnings ESP Filter
.
Cirrus Logic currently has a Zacks Rank of 3 and an Earnings ESP of 3.63%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Vishay Intertechnology, Inc.
VSH
has an Earnings ESP of +4.82% and a Zacks Rank of 2, at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Qorvo, Inc.
QRVO
has an Earnings ESP of +0.78% and a Zacks Rank of 2, currently.
Facebook, Inc.
FB
has an Earnings ESP of +0.88% and currently, a Zacks Rank of 3.
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