What's in the Offing for Cirrus Logic's (CRUS) Q2 Earnings?

Cirrus Logic, Inc. CRUS is slated to release second-quarter fiscal 2021 results on Nov 2.

For the fiscal second quarter, the company expects revenues between $290 million and $330 million. The Zacks Consensus Estimate is pegged at $310.5 million, indicating a year-over-year decline of 20.2%.

The Zacks Consensus Estimate for quarterly earnings is pinned at 89 cents, suggesting a 42.6% plunge, year on year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 52.6%.

Cirrus Logic, Inc. Price and Consensus

Cirrus Logic, Inc. Price and Consensus

Cirrus Logic, Inc. price-consensus-chart | Cirrus Logic, Inc. Quote

In the last reported quarter, it delivered non-GAAP earnings per share of 53 cents, which outpaced the Zacks Consensus Estimate of 30 cents as well as came in higher than the year-ago figure of 35 cents.

Total revenues of $242.6 million also surpassed the Zacks Consensus Estimate of $226 million and improved 2% year over year.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

Cirrus Logic’s fiscal second-quarter performance might have been affected by the decline in smartphone volumes due to the pandemic-induced shift in demand.

Additionally, intense competition, adverse currency translations and a volatile macroeconomic environment were primary challenges for the company during the quarter under review.

Nonetheless, Cirrus Logic’s quarterly performance is likely to have benefited from robust demand for certain components. Solid customer engagement across its portfolio is anticipated to have been a tailwind as well.

Rising demand for the company’s products in applications such as tablets, laptops and digital headsets is likely to have been a consistent growth driver. Buoyant demand for smart codecs, boosted amplifiers and haptic drivers in the Android market is also expected to have been a key growth catalyst.

What Our Model Says

Our proven model does not predict 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 carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

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 +6.45% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alphabet GOOGL has an Earnings ESP of +7.40% and carries a Zacks Rank of 2, currently.

AMETEK, Inc. AME has an Earnings ESP of +0.83% and currently carries a Zacks Rank of 3.

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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.

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