Why Cirrus Logic Shares Soared

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of audio codec specialist Cirrus Logic (NAS: CRUS) are soaring today by as much as 16% after the company reported earnings last night.

So what: Fourth-quarter revenue was $110.6 million, with non-GAAP earnings per share of $0.36, both of which were just about what the Street was looking for. Next quarter's guidance was a tad light, with revenue outlook between $96 million and $106 million, compared to the consensus estimate of $106.6 million.


Now what: The real culprit of today's jump is this sentence in the release: "Due to the timing of various product introductions later this year, the company expects to transition to a sharply higher level of revenue beginning in the September quarter." As Cirrus is the audio codec supplier for Apple (NAS: AAPL) , that's a big hint that it will continue to enjoy its seat in the new iPhone, which should launch around that time frame. Full-year 2013 revenue is expected to grow "substantially" as a result.

Interested in more info on Cirrus Logic? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuowns shares of Apple, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Apple and Cirrus Logic.Motley Fool newsletter serviceshave recommended buying shares of Apple.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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