Aggressive Growth: Cirrus Logic (CRUS)

Cirrus Logic Inc. (CRUS) keeps beating expectations and shares keep setting new 52-week highs. Look for earnings estimates to spike after the most recent surprise.

Company Description

Cirrus develops analog and mixed-signal circuits. The semiconductor maker supports various audio and energy-related applications. The company is based in Texas but also operates in Europe and Asia.

Another Beat

On Jan 20 posted its fourth consecutive earnings surprise. The most recent came on revenue of nearly $82 million, more than doubling the same period last year. Revenue was up 31% on a quarter-over-quarter basis.

Earnings per share came in at 27 cents, a penny better than Wall Street expected.

Bullish Comments

Guidance is one of the biggest areas to focus on in an earnings release. It does not get much better than management referring to the future of the company as “very bright”.

Estimates Rising

Only 1 of the 4 analysts following Cirrus has submitted their new earnings estimates, but they look good. The new full-year fiscal 2011 projection is $1.21, compared to the current consensus of $1.06.

Next year’s estimate is now $1.42, well above the $1.18 old estimates are averaging. Last year the company earned just 36 cents, making for some fantastic growth rates.

The Chart

Shares of CRUS have become increasingly volatile throughout the year, but those willing to stomach the swings have profited handsomely. Shares are trading at the 52-week high and on a nice bullish trend line.

Read the January 6th Feature Here

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CIRRUS LOGIC (CRUS): Free Stock Analysis Report
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About Bill Wilton 56 Articles

Affiliation: Zacks Investment Research

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service.

Visit: Zacks Investment Research

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