Zacks Research Forecasts Weaker Earnings for Cirrus Logic

Key Points

• Zacks Research lowered Cirrus Logic’s Q2 FY2027 EPS forecast to $2.15 from $2.42 and cut FY2027 and FY2028 estimates to $7.47 and $7.75, respectively. Zacks maintains a “Strong Sell” rating.
• Despite the weaker forecasts, Cirrus Logic’s latest quarterly results modestly exceeded expectations, with EPS of $1.84 versus $1.81 expected and revenue of $459.72 million, up 12.9% year over year.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $150.71, while shares recently opened at $110.88, near their 52-week low of $108.81.

Cirrus Logic, Inc. (NASDAQ:CRUS - Free Report) - Equities research analysts at Zacks Research reduced their Q2 2027 earnings per share estimates for Cirrus Logic in a report issued on Wednesday, August 26th. Zacks Research analyst Team now expects that the semiconductor company will post earnings per share of $2.15 for the quarter, down from their previous estimate of $2.42. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Cirrus Logic's current full-year earnings is $7.47 per share. Zacks Research also issued estimates for Cirrus Logic's Q3 2027 earnings at $2.48 EPS, FY2027 earnings at $7.47 EPS, Q1 2028 earnings at $1.40 EPS, Q3 2028 earnings at $2.71 EPS, FY2028 earnings at $7.75 EPS, Q1 2029 earnings at $1.52 EPS and FY2029 earnings at $8.73 EPS.

A number of other brokerages have also commented on CRUS. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Cirrus Logic in a research report on Wednesday, June 24th. Barclays lowered their price target on Cirrus Logic from $140.00 to $130.00 and set an "equal weight" rating for the company in a report on Thursday, August 6th. KeyCorp dropped their price objective on Cirrus Logic from $190.00 to $170.00 and set an "overweight" rating on the stock in a research note on Thursday, August 6th. Wall Street Zen downgraded Cirrus Logic from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Jefferies Financial Group raised Cirrus Logic to a "buy" rating in a research report on Thursday, June 4th. Five investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $150.71.

Cirrus Logic Price Performance

Shares of CRUS opened at $110.88 on Friday. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 13.57 and a beta of 1.18. Cirrus Logic has a 1-year low of $108.81 and a 1-year high of $180.42. The company has a 50-day moving average of $134.99 and a 200 day moving average of $147.78.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.03. The firm had revenue of $459.72 million for the quarter, compared to analysts' expectations of $460.32 million. Cirrus Logic had a net margin of 21.00% and a return on equity of 20.61%. The business's revenue for the quarter was up 12.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.51 earnings per share.

Hedge Funds Weigh In On Cirrus Logic

Large investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd boosted its position in Cirrus Logic by 7,333.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 223 shares of the semiconductor company's stock valued at $26,000 after acquiring an additional 220 shares in the last quarter. Geneos Wealth Management Inc. raised its position in shares of Cirrus Logic by 120.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 220 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 120 shares in the last quarter. Kohmann Bosshard Financial Services LLC bought a new position in shares of Cirrus Logic in the 4th quarter worth $33,000. Torren Management LLC purchased a new stake in shares of Cirrus Logic during the 4th quarter worth $35,000. Finally, Kestra Advisory Services LLC purchased a new stake in shares of Cirrus Logic during the 4th quarter worth $36,000. Institutional investors own 87.96% of the company's stock.

Insider Buying and Selling at Cirrus Logic

In other news, EVP Scott Thomas sold 1,300 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $180.04, for a total value of $234,052.00. Following the completion of the sale, the executive vice president owned 31,048 shares of the company's stock, valued at approximately $5,589,881.92. This represents a 4.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jeffrey W. Baumgartner sold 3,907 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $168.54, for a total transaction of $658,485.78. Following the transaction, the executive vice president owned 17,575 shares in the company, valued at approximately $2,962,090.50. This represents a 18.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 16,631 shares of company stock valued at $2,536,629. Company insiders own 1.20% of the company's stock.

Trending Headlines about Cirrus Logic

Here are the key news stories impacting Cirrus Logic this week:

• Positive Sentiment: Zacks raised its FY2029 EPS forecast to $8.73 from $8.58, suggesting some longer-term earnings potential despite the firm’s negative rating.
• Neutral Sentiment: The current-year consensus EPS estimate remains $7.47. Cirrus Logic’s most recent quarterly results were also relatively solid, with EPS of $1.84 versus the $1.81 consensus and revenue of $459.72 million, up 12.9% year over year.
• Negative Sentiment: Zacks reduced its FY2027 EPS estimate to $7.47 from $8.08, while cutting FY2028 EPS to $7.75 from $8.53. The revisions imply weaker expected profitability across the next two fiscal years.
• Negative Sentiment: Several quarterly forecasts were lowered: Q2 FY2027 EPS to $2.15 from $2.42, Q3 FY2027 to $2.48 from $2.76, Q1 FY2028 to $1.40 from $1.50, Q2 FY2028 to $2.21 from $2.42, Q4 FY2027 to $1.33 from $1.49, and Q4 FY2028 to $1.42 from $1.56.
• Negative Sentiment: The Q3 FY2028 EPS forecast was cut particularly sharply, to $2.71 from $3.04. Collectively, the estimate reductions are likely weighing on CRUS because they point to slower earnings growth and reinforce the bearish analyst stance.

Cirrus Logic Company Profile

Cirrus Logic, Inc, headquartered in Austin, Texas, is a fabless semiconductor company specializing in high-precision analog and mixed-signal processing solutions. The firm develops low-power, high-performance audio, voice, and power management integrated circuits, serving prominent consumer electronics OEMs. Its semiconductor devices are designed to enhance audio quality, battery life, and system integration in mobile phones, tablets, wireless headsets and other portable devices.

The company's product portfolio includes digital-to-analog converters (DACs), analog-to-digital converters (ADCs), audio codecs, power management ICs, voice processors and integrated amplifiers.

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