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Market Overview

Earnings Outlook For Cirrus Logic

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On Monday, February 01, Cirrus Logic (NASDAQ:CRUS) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Cirrus Logic reporting earnings of $1.86 per share on sales of $461.50 million. In the same quarter last year, Cirrus Logic reported earnings per share of $1.41 on sales of $374.67 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 31.91%. Revenue would be up 23.18% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 0.90 0.30 0.49 1.13
EPS Actual 1.26 0.53 0.68 1.41
Revenue Estimate 310.56 M 225.18 M 259.91 M 345.71 M
Revenue Actual 347.32 M 242.57 M 279.29 M 374.67 M

Stock Performance

Shares of Cirrus Logic were trading at $93.96 as of January 28. Over the last 52-week period, shares are up 23.6%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cirrus Logic is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings