Shares of Cypress Semiconductor Corporation (CY) jumped 14.3% last month, according to data provided by S&P Global Market Intelligence, after a strong second-quarter 2018 report that outpaced both Wall Street's and the company's own revenue and earnings guidance.
The stock slowly moved up throughout most of July, but jumped once the company posted second-quarter results that surpassed Wall Street's expectations. Analysts' consensus estimate was for earnings per share of $0.29, but the company delivered $0.33. Cypress also beat analysts' consensus revenue estimate of $619.6 million, instead reporting sales of $624.1 million.
Sales continued to tick up in the company's two most important revenue segments: automotive and consumer. In the automotive segment, sales rose 5%, and management said that long-term growth for the automotive tech business would be between 8% and 12%. CEO Hassane El-Khoury also noted that cross-selling strategies in the consumer segment were paying off and that the company continues to win customers in the smart-home and wearable tech markets.
Cypress Semiconductors' investors likely have more to look forward to in the coming months, with management predicting revenue between $655 million and $685 million, which could shoot past Wall Street's estimate of $670 million if the company reaches the higher end of its forecast. EPS is also expected to land between $0.36 and $0.40, which could top analysts' consensus estimate of $0.38 per share.
Considering Cypress' solid second-quarter results and the fact that management expects third-quarter sales and earnings to be strong -- and that they could exceed analysts' expectations -- it's no surprise investors are pleased with the company right now.