Market Overview

Earnings Preview: Cirrus Logic

Earnings Preview: Cirrus Logic

Chip-maker Cirrus Logic (NASDAQ: CRUS) will be releasing its quarterly earnings data on Monday after the closing bell. This stock is of interest to many traders because the company is a supplier to Apple (NASDAQ: AAPL) and has displayed a high amount of volatility in the wake of past earnings releases. Cirrus Logic develops analog and mixed-signal integrated circuits (ICs) for a range of audio and energy markets.

Heading into the report, Wall Street analysts have consensus EPS estimates for Cirrus Logic of $0.71. The low estimate is $0.64 with a high estimate of $0.76. With this much uncertainty regarding the company's quarterly earnings, the stock could be very volatile after the numbers are released. Last year, the company reported EPS of $0.33. Current estimates imply that analysts expect earnings to rise more than 115 percent year over year.

The consensus revenue estimate heading into the report is $180.77 million. The low estimate is $174.20 million with a high estimate of $186.50 million. In the year ago period, the company reported revenues of $101.60 million. Current estimates call for a 77.90 percent increase in revenues on a year over year basis.

Over the last three months, EPS estimates have risen sharply for Cirrus Logic. Just three months ago the average estimate was $0.60 compared to the current consensus of $1.07. During this period, the stock has also risen sharply, notching a gain of more than 37 percent. Year-to-date, CRUS has surged nearly 151 percent making it one of the best performers on the Nasdaq. Traders should be aware that with estimates and the stock price up so sharply in such a short amount of time, it may take truly impressive results for CRUS to avoid a post-earnings sell-off.

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