CRUS Stock – Cirrus Logic Shares Plunge on Disappointing Outlook

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Apple (AAPL) supplier Cirrus Logic (CRUS) has forecasted current-quarter revenue missing analysts’ average estimates, and that has dropped CRUS stock 5% pre-market.

cirrus-logic-crus-stockWith Apple itself accounting for some 82% of Cirrus Logic’s revenue in fiscal 2013, the company is predicting revenues to be down for the current quarter.

Cirrus is one of the world’s most valuable technology companies.

Cirrus Logic stated in a press release that revenue is forecast to be between $130 million and $150 million for the March quarter, lower than the $173.8 million analysts on average were expecting.

For the fourth quarter last year, Cirrus reported $207 in revenue. Net income was down to $41.5 million in the third quarter, from $67.9 million, a year earlier.

Revenue fell 29 percent to $218.9 million.

Via Reuters:

The forecast decline in revenue from the same quarter last year is primarily due to a shift of mix in products with lower average selling prices and changes in pricing structure, the company said in a letter to shareholders.

Analysts on average had expected earnings of 77 cents per share on revenue of $213.3 million, according to Thomson Reuters I/B/E/S.

“We delivered strong revenue, operating profit and EPS results for the third quarter,” said Jason Rhode, president and chief executive officer, in the company release. “While our business is typically driven by product cycles that weight our revenue more heavily towards the September and December quarters, we expect to exceed our operating profit goal of 20 percent in FY14 and we remain committed to this long-term target.”

CRUS stock is down 36% from this time last year.


Article printed from InvestorPlace Media, https://investorplace.com/2014/01/crus-stock-cirrus-logic-shares/.

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