Benzinga | Oct 30, 2020 11:04AM EDT

Cirrus Logic's Earnings: A Preview

Cirrus Logic (NASDAQ: CRUS) announces its next round of earnings this Monday, November 02. Here is Benzinga's look at Cirrus Logic's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Cirrus Logic earnings of $0.89 per share. Revenue will likely be around $310.18 million, according to the consensus estimate. In the same quarter last year, Cirrus Logic reported earnings per share of $1.55 on revenue of $388.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 42.58%. Sales would be down 20.24% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 0.30 0.49 1.13 0.94EPS Actual 0.53 0.68 1.41 1.55Revenue Estimate 225.18 M 259.91 M 345.71 M 320.98 MRevenue Actual 242.57 M 279.29 M 374.67 M 388.91 M

Stock Performance

Over the last 52-week period, shares of Cirrus Logic are up 0.53%.

Do not be surprised to see the stock move on comments made during its conference call. Cirrus Logic is scheduled to hold the call at 17:00:00 ET and can be accessed here.