Why Cirrus Logic and Apple Shares Soared
What: Shares of Cirrus Logic (NAS: CRUS) and its largest customer, Apple (NAS: AAPL) , are both soaring today, with Cirrus Logic gaining as much as 12% while its Cupertino customer jumped 10%, after Apple posted a blowout quarter.
So what: As Cirrus is the sole supplier for audio codecs in iDevices, the 35 million iPhones and 11.8 million iPads that Apple just sold bode well for the smaller company. Other Apple suppliers are also enjoying gains on the news, but Cirrus Logic relies more heavily on Apple than some of Apple's other component providers do.
Now what: Last quarter, Apple contributed a whopping 70% of Cirrus Logic's revenue, up from 54% a year ago. On top of that, Cirrus Logic is actually set to report earnings today after the close, with analysts expecting revenue of $110 million and earnings per share of $0.30. In just a few hours, we'll know for sure if this optimism for Cirrus is justified, but I have a feeling it is.
Interested in more info on Cirrus Logic? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple and Cirrus Logic. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.