Earnings Beats And Upgraded Estimates Might Change The Case For Investing In Cirrus Logic (CRUS)

• Recently, Cirrus Logic was highlighted as Zacks Bull of the Day after delivering four consecutive earnings beats and seeing analysts raise their earnings estimates, reflecting confidence in its operations and profitability.
• This recognition underscores how consistent outperformance and improving operating margins can influence analyst sentiment, potentially reshaping expectations for a company already undergoing product and end-market diversification.
• Next, we will examine how Cirrus Logic's recent earnings estimate upgrades might influence its existing investment narrative built around diversification and mixed-signal growth.

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Cirrus Logic Investment Narrative Recap

To own Cirrus Logic, you need to believe its mixed signal and audio expertise can keep it embedded in key consumer devices while diversification slowly takes hold beyond smartphones. The Zacks Bull of the Day recognition and recent estimate upgrades reinforce the near term earnings momentum story, but they do not remove the biggest risk, which remains customer concentration in a handful of large smartphone accounts.

The company’s ongoing US$500,000,000 share repurchase program, with roughly 9.7% of shares already bought back under the May 2025 authorization, is the clearest recent development tied to this stronger earnings backdrop. While buybacks can amplify per share results when profitability is solid, they also raise the stakes if revenue growth later normalizes after recent pull ins or if margin gains prove harder to sustain.

Yet investors should also be aware that Cirrus Logic’s dependence on a small number of smartphone customers could...

Read the full narrative on Cirrus Logic (it's free!)

Cirrus Logic's narrative projects $1.9 billion revenue and $295.7 million earnings by 2028.

Uncover how Cirrus Logic's forecasts yield a $140.00 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently see fair value between US$84.85 and US$140, highlighting how far apart individual views can be. When you set that against the risk of revenue volatility if a major smartphone customer cuts orders, it underlines why many market participants prefer to weigh several different viewpoints before forming a view on Cirrus Logic’s prospects.

Explore 3 other fair value estimates on Cirrus Logic - why the stock might be worth as much as 15% more than the current price!

Build Your Own Cirrus Logic Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cirrus Logic research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Cirrus Logic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cirrus Logic's overall financial health at a glance.

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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.

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