Cypress Semiconductor Earnings Preview

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Investors are on the edge of their collective seats, hoping that Cypress Semiconductor (NAS: CY) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, Jan. 26. Cypress Semiconductor designs, develops, manufactures, and markets high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and system value.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on this stock, with 12 analysts rating it as a buy and only one rating it as a sell. Analysts like Cypress Semiconductor better than competitor ON Semiconductor overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $237.1 million in revenue this quarter. That would represent a rise of 4.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.15 per share. Estimates range from $0.12 to $0.17.

What our community says:
CAPS All-Stars are solidly behind the stock, with 97.4% assigning it an outperform rating. The community at large concurs with the All-Stars, with 96.7% awarding it a rating of outperform. Fools are keen on Cypress Semiconductor and haven't been shy with their opinions lately, logging 298 posts in the past 30 days. Cypress Semiconductor has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Cypress Semiconductor's profit has risen year over year by an average of more than twofold over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

56.3%

54.5%

55.2%

55.9%

Operating Margin

17.2%

10.5%

23.6%

7.2%

Net Margin

15%

15.9%

23.7%

4.3%

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Motley Fool newsletter services have recommended buying shares of Cypress Semiconductor.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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