Saturday, January 26, 2013

Why Cirrus Logic Shares Rebounded With a Vengeance

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 Cirrus Logic (NASDAQ: CRUS  ) have rebounded after tanking yesterday, enjoying gains as high as 13% today after reporting earnings.

So what: Yesterday's plunge was related to Apple's�earnings, since the iPhone maker is Cirrus Logic's largest customer and investors were disappointed in iPhone sales. That fear was misplaced, as revenue in the fourth quarter skyrocketed 153% to $310 million, shattering the consensus estimate of $285 million.

Now what: The top line similarly crushed forecasts, with the $1.64 per share profit blowing past the Street's best guesses of $1.41 per share. The company expects the current quarter to see sales of $200 million to $220 million, with gross margin of 50% to 52%. That top line outlook represents 80% growth from a year prior, which, while less than the growth it just posted, is nothing for investors to complain about.

Interested in more info on Cirrus? Add it to your watchlist by clicking here.

2013 and beyond
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