Cirrus Logic's stock surged 5.07% in pre-market trading on Wednesday, following a significant earnings beat and positive outlook from the semiconductor company.
The sharp increase comes after Cirrus Logic reported fiscal third-quarter financial results that substantially exceeded analyst expectations. The company posted adjusted earnings per share of $2.97, beating the consensus estimate of $2.44 by 21.92%, while revenue reached $580.6 million, surpassing the estimated $533.89 million by 8.75%.
Management attributed the strong performance to stronger-than-anticipated demand for components shipping into smartphones and a favorable product mix. Additionally, the company provided fourth-quarter revenue guidance of $410 million to $470 million, which exceeds analyst forecasts. Several analysts also raised their target prices for Cirrus Logic following the earnings report, including Stifel (to $163 from $150), Barclays (to $110 from $100), and Benchmark (to $160 from $150).