What happened

Shares of Cirrus Logic (NASDAQ:CRUS) popped 26.8% in October, according to data from S&P Global Market Intelligence, after the audio chip leader sounded off with better-than-expected third-quarter 2019 results.

The stock roared more than 16% higher on Oct. 31 alone -- the first trading day after Cirrus' quarterly update hit the wires.

Stock market chart with green and white up arrows.

IMAGE SOURCE: GETTY IMAGES.

So what

More specifically, Cirrus' fiscal second-quarter 2020 revenue climbed 6.2% year over year to $388.9 million, well above guidance provided in late July for between $300 million and $340 million. That translated to adjusted net income of $93.3 million, or $1.55 per share, up from $1.08 per share a year earlier and crushing consensus estimates for $0.94 per share. 

"The company continues to experience increased demand for products that solve complex analog and digital signal-processing challenges," elaborated Cirrus Logic CEO Jason Rhode. "Leveraging solid relationships with many of the leaders in the markets we target, a robust product portfolio and meaningful investments in innovative technologies, we are excited about our opportunities for growth in the coming years."

Now what

In the meantime, Cirrus told investors it sees revenue in its current fiscal third quarter arriving between $325 million and $365 million, the midpoint of which (at $345 million) stood well above consensus estimates for fiscal Q3 sales to be closer to $339 million.

Given its relative outperformance last quarter -- and even with shares of Cirrus up more than 70% year to date leading into last month's report -- it was no surprise to see the stock rally even higher in response. If Cirrus can leverage its momentum to keep capitalizing on increased demand for its innovative solutions, I suspect this won't be the last time we see it deliver outsize gains for investors.