Cirrus Logic Inc. (CRUS), a leading provider of audio and mixed-signal integrated circuits, saw its shares plummet in pre-market trading on November 5, 2024, following the company's financial results and guidance for the third quarter of fiscal year 2025.
Despite reporting better-than-expected earnings per share (EPS) of $2.25 for the second quarter, beating analyst estimates of $2.03, and revenue of $541.9 million, surpassing expectations of $520.5 million, Cirrus Logic's stock experienced a pre-market plunge of 10.56%. This sharp decline was primarily driven by the company's weak revenue guidance for the third quarter.
For the third quarter, Cirrus Logic projected revenue to range between $480 million and $540 million, significantly lower than the consensus estimate of $592.6 million. The company attributed this larger-than-typical seasonal decline to several factors, including a shift in fiscal year timing, higher Android production in the previous year's quarter, and uncertainty around demand during the holiday period.
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