🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Cirrus Logic shares tumble on weak Q3 guidance despite Q2 beat

Published 04/11/2024, 22:12
© Reuters.
CRUS
-

AUSTIN, Texas - Cirrus Logic, Inc. (NASDAQ:CRUS) reported better-than-expected second quarter fiscal 2025 results on Thursday, but shares fell 7% in after-hours trading as the company's third quarter revenue guidance came in below analyst expectations.

The audio chip maker posted adjusted earnings per share of $2.25, surpassing the analyst estimate of $2.02. Revenue for the quarter reached $541.9 million, exceeding the consensus forecast of $520.53 million and marking a record for the company.

Despite the strong Q2 performance, Cirrus Logic's outlook for the third quarter disappointed investors. The company expects Q3 revenue between $480 million and $540 million, falling short of the $592.6 million analyst consensus.

John Forsyth, Cirrus Logic's president and CEO, attributed the robust Q2 results to "strong demand for products shipping into smartphones." He noted that the company began shipping its next-generation custom boosted amplifier and first 22-nanometer smart codec in recently launched smartphones during the quarter.

Cirrus Logic also reported progress in the laptop market, securing its first high-volume mainstream design win with its latest PC codec and commencing shipments of its first power product in multiple tier-one customers' devices.

The company's Q2 gross margin stood at 52.2% on both a GAAP and non-GAAP basis. Operating expenses were $150.7 million on a GAAP basis and $126.8 million on a non-GAAP basis.

For the third quarter, Cirrus Logic anticipates a gross margin between 51% and 53% on a GAAP basis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.