Shares of Cirrus Logic (CRUS - Free Report) crashed more than 10% in after-hours trading Monday—adding to its 4% loss in regular trading hours—after the company posted softer-than-expected earnings results and weak guidance for the current quarter.
Cirrus Logic produces high performance, low-power ICs for audio and voice signal processing applications. The company’s solutions span the entire audio signal chain, from capture to playback, providing products for the world's smartphones, tablets, digital headsets, wearables, and emerging smart-home applications.
For the fiscal third quarter, Cirrus reported adjusted earnings of $1.59 per share, missing the Zacks Consensus Estimate of $1.77. Total revenues came in at $482.7 million, down from $523 million in the year-ago period and significantly below our consensus estimate of $531.8 million.
“Unanticipated weakness in smartphone demand that materialized in late December drove our Q3 results below expectations and further impacted our Q4 guidance,” said Cirrus CEO Jason Rhode.
For the fourth quarter, the company now expects revenue to fall in the range of $300 million to $340 million. This is well under our current consensus estimate, which is calling for total revenues of $370.4 million.
Cirrus shares closed at $46.75 on Monday, down about 4% from Friday’s close. The stock tumbled nearly 11% to touch $40.00 per share in after-hours trading.
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Shares of Cirrus Logic (CRUS - Free Report) crashed more than 10% in after-hours trading Monday—adding to its 4% loss in regular trading hours—after the company posted softer-than-expected earnings results and weak guidance for the current quarter.
Cirrus Logic produces high performance, low-power ICs for audio and voice signal processing applications. The company’s solutions span the entire audio signal chain, from capture to playback, providing products for the world's smartphones, tablets, digital headsets, wearables, and emerging smart-home applications.
For the fiscal third quarter, Cirrus reported adjusted earnings of $1.59 per share, missing the Zacks Consensus Estimate of $1.77. Total revenues came in at $482.7 million, down from $523 million in the year-ago period and significantly below our consensus estimate of $531.8 million.
“Unanticipated weakness in smartphone demand that materialized in late December drove our Q3 results below expectations and further impacted our Q4 guidance,” said Cirrus CEO Jason Rhode.
For the fourth quarter, the company now expects revenue to fall in the range of $300 million to $340 million. This is well under our current consensus estimate, which is calling for total revenues of $370.4 million.
Cirrus shares closed at $46.75 on Monday, down about 4% from Friday’s close. The stock tumbled nearly 11% to touch $40.00 per share in after-hours trading.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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