- Initially flat after hours yesterday after providing light FQ4 guidance in its FQ3 report, Cirrus Logic (NASDAQ:CRUS) surged above $32 today.
- Likely helping out: When asked on its earnings call (transcript) about FY17 (ends March '17) growth, Cirrus suggested it could be above 15% (consensus is at 14%). "If you look at our model in general, we think one of the things -- one of the characteristics of a successful company, one of the things we pay our people on in a lot of cases is tied to 15% revenue growth. So, if were excited about revenue growth and we expect it to be strong, then you can certainly imagine that our expectations are higher than that. But again, there's all sorts of moving parts that we don't get to control."
- Oppenheimer's Rick Schafer is pleased with the FY17 commentary and has upgraded to Outperform. “We believe this [15%+] growth supports material (+60%- plus) content gains in the upcoming IP7. In a flattish smartphone unit market, our math suggests CRUS has earnings power of $4+ in CY17.”
- Three weeks ago, Pac Crest upgraded to Overweight, while suggesting Cirrus could supply a smart codec IC for noise-cancelling earbuds that the firm thinks could ship with the iPhone 7, which is expected to ditch the 3.5mm headphone jack in favor of plugging in through a Lightning port.
- Schafer offers similar commentary today: ""We believe CRUS has secured a smart codec enabling active noise cancellation in AAPL's earbuds for the IP7. CRUS saw its content in the IP6s jump ~60% to $3.50 vs the IP6. We estimate the additional smart codec socket could raise CRUS' ASP by $2+ to ~$5.50 in the IP7."
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Cirrus' FQ3 results, guidance/details