What's in the Offing for Cirrus Logic's (CRUS) Q3 Earnings?

Cirrus Logic, Inc. CRUS is slated to release third-quarter fiscal 2022 results on Jan 31.

For third-quarter fiscal 2022, the company projects revenues between $490 million and $530 million. At the mid-point, the guidance suggests growth of approximately 5% year over year. The Zacks Consensus Estimate is pegged at $511.13 million, indicating a year-over-year increase of 5.21%.

The Zacks Consensus Estimate for quarterly earnings is pinned at $2.15 per share, suggesting a 0.9% rise year on year.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.9%.

In the last reported quarter, CRUS delivered non-GAAP earnings per share of $1.82, outpacing the Zacks Consensus Estimate of $1.63 per share. The bottom line surged 44.4% from the prior-year quarter’s reported figure of $1.26.

Total revenues of $465.9 million surpassed the Zacks Consensus Estimate of $450.7 million and increased 34.1% year over year.

Cirrus Logic, Inc. Price and EPS Surprise

Cirrus Logic, Inc. price-eps-surprise | Cirrus Logic, Inc. Quote

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

Factors at Play

Cirrus Logic is likely to have gained from solid customer engagement across its portfolio in the fiscal third quarter. The company’s strategy to diversify its portfolio beyond audio products bodes well.

Continued higher demand for components in smartphones, wearables and tablets is expected to have positively impacted Cirrus Logic’s fiscal third quarter. High demand for fast-charging and Power integrated circuits or ICs, smart codecs, boosted amplifiers and haptic drivers in the android market is also expected to have been a key growth catalyst.

Audio and high-performance mixed-signal product lines are likely to have witnessed solid traction. Growth opportunities in voice biometrics and closed-loop controllers are projected to have been the other catalysts.

In the last reported quarter, Cirrus Logic’s High-Performance Mixed-Signal segment, including a few of its non-audio products, contributed 35.4% to total revenues. The division’s revenues surged 144.9% year over year to $165.1 million on strong demand for camera controllers, haptics & sensing solutions.

Synergies from the acquisition of Lion Semiconductor are expected to have aided the top line. 

Despite strong semiconductor demand, ongoing pandemic-induced supply chain constraints might have acted as a headwind for Cirrus Logic. The company’s top line is likely to have been affected by reduced volumes due to the timing of product ramps.

What Our Model Says

Our proven model predicts earnings beat for Cirrus Logic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Cirrus Logic has an Earnings ESP of 1.48% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combinations

Here are some stocks you may consider as our proven model shows that these have the right mix of elements to beat estimates this time.

ONTO Innovation ONTO has an Earnings ESP of +0.9% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ONTO Innovation is set to report fourth-quarter 2021 results on Feb 8. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, which suggests an increase of 54.2% from the prior-year quarter’s reported figure. Shares of ONTO have increased 17.2% in the past year.

Advanced Micro Devices AMD has an Earnings ESP of +3.47% and a Zacks Rank of 2 at present.

AMD is scheduled to release fourth-quarter 2021 results on Feb 1. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, which suggests an increase of 44.2% from the prior-year quarter’s levels. Shares of AMD have rallied 17.2% in the past year.

Electronic Arts EA has an Earnings ESP of +2.76% and a Zacks Rank of 3.

Electronic Arts is scheduled to release third-quarter fiscal 2022 results on Feb 1. The Zacks Consensus Estimate for earnings is pegged at $3.23 per share, indicating an increase of 4.5% from the year-ago quarter’s levels. Shares of Electronic Arts have declined 7.9% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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.