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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Unlike their high-flying, cloudy namesakes, shares of audio chip expert Cirrus Logic (Nasdaq: CRUS ) are earthbound today -- falling as much as 11.4% on more than twice the average trading volume.
So what: Fourth-quarter earnings missed analyst targets by $0.02 per share and first-quarter sales guidance also disappointed the Street. It's the second earnings miss in the last three quarters, following a string of 10 straight meet-or-beat reports.
Now what: Cirrus shares are down more then 34% since the February peak, which coincides on an almost-spooky level with focal customer Apple (Nasdaq: AAPL ) bouncing off its own all-time highs. Production yield issues hurt the bottom line this time but have been corrected and play no part in coming quarters. I recommended buying on the dip when Cirrus pre-announced these results two weeks ago, and the stock is only 8% more expensive today, so the advice still stands. Short-term issues don't really bother long-term investors.
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