Why Cirrus Logic Shares Soared
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.
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