Cirrus Logic's Record Quarter Followed With Strange Guidance
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Cirrus Logic reported record revenue for September, but its guidance for December fell short, leading to a negative market reaction. The shortfall is due to a shifted revenue pattern, a shorter December quarter, and an earlier Android ramp. Future growth is expected from new PC and Android products, with potential earnings boost from lower corporate tax rates.
November 22, 2024 | 2:30 pm
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Cirrus Logic's record September revenue was overshadowed by weak December guidance, causing a negative market reaction. The guidance shortfall is attributed to a shifted revenue pattern, a shorter December quarter, and an earlier Android ramp. However, future growth is anticipated from new PC and Android products, along with potential earnings boost from lower corporate tax rates.
The negative market reaction to Cirrus Logic's weak December guidance suggests a short-term decline in stock price. The guidance shortfall is due to specific factors like a shifted revenue pattern and a shorter quarter, which are temporary. However, the company's future growth prospects from new products and tax benefits could mitigate long-term impacts.
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