money 
Cirrus Logic Drops 3% In Extended Trading On Revenue Outlook
Shares of Cirrus Logic fell 3.1% in extended market trading on Monday as the company expects 2Q sales to be lower than analysts' estimates. While 2Q revenue guidance was disappointing, its 1Q earnings crushed analysts' estimates.
Cirrus Logic's (CRUS) adjusted EPS jumped 51.4% to $0.53 year-on-year exceeding analysts’ estimates of $0.30. Moreover, revenues grew 1.8% to $242.6 million year-over-year and surpassed Street estimates of $225.6 million.
The audio chip-maker anticipates 2Q revenues between $290 million and $330 million, which is lower than the Street estimate of $315 million at mid-point. Moreover, Cirrus Logic anticipates a decline in the average selling price across some products during the quarter.
On June 22, Barclays analyst Blayne Curtis downgraded Cirrus Logic to Sell from Hold and lowered the price target to $60 (19.5% downside potential) down from $75. Curtis said he sees "downside to estimates given the likely loss of in-box earbuds this year and loss of its smart codec at Samsung."
Overall, CRUS analysts have a cautiously optimistic Moderate Buy consensus on the stock. The average price target of $77.67 implies upside potential of 4.3%. (See CRUS stock analysis on TipRanks).
Related News:
Church & Dwight Jumps 7% on 2Q Earnings; Analyst Sees More Upside Ahead
Molson Coors Delivers Q2 Earnings Beat Despite Covid-19 Fallout
Newell Brands Drops 7% On Dim Outlook
