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Cirrus Logic (CRUS) to Report Q4 Earnings: What to Expect?

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Cirrus Logic Inc.CRUS is set to report fourth-quarter fiscal 2017 results on May 3. Last quarter, the company recorded a positive earnings surprise of 15.03%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 58.14%.

Let's see how things are shaping up for this quarter.

Factors to Consider

Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company posted better-than-expected third-quarter fiscal 2017 results. The year-over-year comparisons on both earnings and revenue front were also favorable.

Cirrus Logic generates a significant portion of its revenues from Apple Inc. This means that there is always a risk of losing an Apple design contract, which will significantly hurt the company's financials.

We remain cautious about the company as the current global economic downturn might have impacted its performance in the to-be-reported quarter. Moreover, the company faces competition from the likes of Texas Instruments Inc. TXN and STMicroelectronics.

Nonetheless, continued investments in the audio segment are expected to have a positive impact in the long run. Additionally, synergies from acquisitions and expansion in the LED market continue to drive growth.

Cirrus Logic, Inc. Price and EPS Surprise

Cirrus Logic, Inc. Price and EPS Surprise | Cirrus Logic, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Cirrus Logic will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for Cirrus Logic is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 59 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Cirrus Logic carries a Zacks Rank #3. Though this increases the predictive power of ESP, the company's ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here is a couple of stocks which, per our model, have the right combination of elements to post an earnings beat this quarter:

AMTEK Inc. AME , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Apple Inc. AAPL , with an Earnings ESP of +1.00%, and a Zacks Rank #3.

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Apple Inc. (AAPL): Free Stock Analysis Report

Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report

Texas Instruments Incorporated (TXN): Free Stock Analysis Report

AMTEK, Inc. (AME): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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