Cirrus Logic (CRUS -13.8%) is off sharply in spite of beating FQ2 estimates and issuing strong...

Cirrus Logic (CRUS -13.8%) is off sharply in spite of beating FQ2 estimates and issuing strong FQ3 guidance (I, II). Preliminary FQ4 guidance for a 15% Q/Q revenue drop (provided in the shareholder letter) is a likely culprit. The guidance translates into revenue of $230M-$255M, above a $205.6M consensus, but expectations have grown thanks to Apple's huge orders. Also a possible concern: Cirrus says it expects its gross margin, pressured by Apple, to stay in the low 50% range "for the foreseeable future." (transcript)

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Comments (2)
  • bjnflicks
    , contributor
    Comments (4335) | Send Message
    The fact is, Apple uses its leverage to contain growth of its suppliers, and Apple is sop cheap right now the best way to invest in Apple is simply Apple. These suppliers are always completely subservient to Apple. So why buy the slave when you can buy the master? Unless of course the slave is cheap. But right now it is Apple that is dirt cheap.
    1 Nov 2012, 10:48 AM Reply Like
  • berniespear
    , contributor
    Comments (251) | Send Message
    Still a bunch of BS that CRUS is falling this much after such a good quarter AND better guidance. Hopefully it is just profit taking.
    1 Nov 2012, 11:13 AM Reply Like
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