Cirrus Logic, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, Cirrus Logic, Inc. (NASDAQ:CRUS) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 8.9% to hit US$556m. Cirrus Logic also reported a statutory profit of US$2.11, which was an impressive 27% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Cirrus Logic

Taking into account the latest results, Cirrus Logic's six analysts currently expect revenues in 2026 to be US$1.87b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 2.9% to US$5.58 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.86b and earnings per share (EPS) of US$5.35 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$131, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Cirrus Logic analyst has a price target of US$140 per share, while the most pessimistic values it at US$115. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cirrus Logic's past performance and to peers in the same industry. We would highlight that Cirrus Logic's revenue growth is expected to slow, with the forecast 1.0% annualised growth rate until the end of 2026 being well below the historical 8.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cirrus Logic is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cirrus Logic following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Cirrus Logic. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Cirrus Logic analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Cirrus Logic Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.