U.S. equities were sinking Monday due to a sell-off that was caused by inflation fears and higher bond yields. The S&P 500 Index fell 4.5%, the Dow Jones Industrial Average declined 4.6% and the Nasdaq Composite slipped 3.7%.
Earnings and management changes made up the bulk of Monday’s after-hours news, with Cirrus Logic, Inc. (NASDAQ:CRUS), Lululemon Athletica inc. (NASDAQ:LULU) and Skyworks Solutions Inc (NASDAQ:SWKS) all making headlines.
Cirrus Logic, Inc. (CRUS)
Cirrus Logic reported weaker-than-expected quarterly results late Monday.
The integrated circuits manufacturer reported fiscal third-quarter net income of $33.8 million, or 52 cents per share, below the year-ago earnings of $122 million, or $1.83 per share. Adjusted earnings were $1.59 per share, below the Wall Street projection of $1.78 per share, according to FactSet.
On the revenue front, Cirrus Logic also disappointed with sales falling from $523 million to $482.7 million. Analysts polled by FactSet were calling for revenue of $531 million.
The company suffered “unanticipated weakness in smartphone demand that materialized in late December drove our Q3 results below expectations and further impacted our Q4 guidance,” said Jason Rhode, Cirrus Logic president and CEO, in a statement.
For its fourth quarter, the company estimates revenue in the range of $300 million to $340 million, below the consensus projection of $373.4 million.
CRUS stock plummets 10.5% after hours.
Lululemon Athletica inc. (LULU)
Lululemon announced a change of management Monday afternoon.
The yoga apparel retailer said in a regulatory filing that CEO Laurent Potdevin will be resigning immediately after four years with the company. Potdevis said he “fell short” of the company’s standards of conduct, without mentioning what specifically he had done.
“Lululemon expects all employees to exemplify the highest levels of integrity and respect for one another, and Mr. Potdevin fell short of these standards,” the company said in a statement.
The retailer is now seeking for anew CEO, while EVP for the Americas Celeste Burgoyne will handle stores and e-commerce now. Meanwhile, COO Stuard Haselden will oversee finance, supply chain and technology, while merchant Sun Choe will be in charge of product development, design, innovation and merchandising.
Lululemon projects to hit $4 billion in revenue in 2020.
LULU stock fell 3.5% after the bell.
Skyworks Solutions Inc (SWKS)
Skyworks reported strong quarterly figures yesterday.
The wireless chipmaker announced first-quarter net income of $70.4 million, or 38 cents per share, below the year-ago total of $257.8 million, or $1.38 per share. Adjusted earnings came in at $2 per share, beating the FactSet projection of $1.91 per share.
Revenue came in at $1.05 billion for the period, topping the year-ago mark of $914.3 million. Analysts polled by FactSet were predicting revenue of $1.05 billion.
For the second quarter, Skyworks expects earnings of $1.60 per share, below the outlook of $1.63 per share. Revenue is slated to be around $910 million, below the expectation of $940.6 million.
SWKS stock gained 1.1% after hours Monday.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.