Stock of the Day

November 12, 2019

Cirrus Logic (CRUS)

$137.98
+$1.01 (+0.7%)
Market Cap: $6.91B

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.

Today's Trend

Cirrus Logic, Inc. (NASDAQ:CRUS) is edging higher as investors digest a mix of bullish earnings commentary and new analyst forecasts, though some longer-term estimates were trimmed. The most supportive headline is that Zacks highlighted Cirrus Logic’s strong history of earnings beats and said the company has the right setup to potentially beat expectations again in its upcoming quarterly report. That kind of pre-earnings optimism can help support the stock.

  • Zacks said Cirrus Logic has an impressive earnings surprise track record and appears positioned for another potential earnings beat, which could lift sentiment ahead of the next report. Article Title
  • KeyCorp kept an Overweight rating on Cirrus Logic and a $190 price target, signaling continued analyst confidence in the stock’s upside.
  • KeyCorp raised its Q1 2027 EPS estimate to $1.45 from $0.72, suggesting a stronger start to that fiscal year than previously expected.
  • KeyCorp also updated a series of forward estimates for Cirrus Logic, leaving FY2028 EPS at $7.61 and FY2027 at $7.31, which provides more detail on the company’s long-term earnings path but is not clearly a near-term catalyst.
  • KeyCorp lowered several other period estimates, including Q2 2027, Q3 2027, Q4 2027, and FY2027 EPS, which may temper enthusiasm around the durability of earnings growth.
  • A Seeking Alpha piece titled Cirrus Logic's Price Correction points to recent weakness or valuation pressure, which may have contributed to some caution around the shares. Article Title

Overall, CRUS is benefiting from optimism that it can keep beating earnings expectations, but the stock is being balanced by mixed analyst revisions that trim some future profit estimates.

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