Cirrus Logic, Inc. Just Recorded A 7.9% EPS Beat: Here's What Analysts Are Forecasting Next

Cirrus Logic, Inc. (NASDAQ:CRUS) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 2.7% to hit US$1.9b. Statutory earnings per share (EPS) came in at US$6.00, some 7.9% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the recent earnings report, the consensus from seven analysts covering Cirrus Logic is for revenues of US$1.86b in 2026. This implies a perceptible 2.2% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 8.4% to US$5.72 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.88b and earnings per share (EPS) of US$5.56 in 2026. So the consensus seems to have become somewhat more optimistic on Cirrus Logic's earnings potential following these results.

See our latest analysis for Cirrus Logic

The consensus price target was unchanged at US$122, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cirrus Logic, with the most bullish analyst valuing it at US$140 and the most bearish at US$90.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cirrus Logic shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 2.2% annualised decline to the end of 2026. That is a notable change from historical growth of 8.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. It's pretty clear that Cirrus Logic's revenues are expected to perform substantially worse than the wider industry.

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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cirrus Logic going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Cirrus Logic's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.