Cirrus Logic, Inc. (NASDAQ:CRUS) just released its third-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$581m, some 8.6% above estimates, and statutory earnings per share (EPS) coming in at US$2.66, 31% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for Cirrus Logic from six analysts is for revenues of US$2.06b in 2027. If met, it would imply a credible 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 3.8% to US$7.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.95b and earnings per share (EPS) of US$6.33 in 2027. So it seems there's been a definite increase in optimism about Cirrus Logic's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$145, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cirrus Logic analyst has a price target of US$163 per share, while the most pessimistic values it at US$110. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Cirrus Logic's revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2027 being well below the historical 5.5% 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 20% 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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$145, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cirrus Logic analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks.

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.