Shares of Cirrus Logic (NASDAQ:CRUS) have jumped today, up by 8% as of 12:15 p.m. EDT, ahead of the company's fiscal first-quarter earnings release later today. Investors are optimistic about the results following a strong earnings release last week by Apple (NASDAQ:AAPL), Cirrus Logic's largest customer.
Cirrus Logic's audio chips are found in a wide variety of Apple products, and the Cupertino, California, tech giant last week reported a 10% jump in hardware product revenue. Apple has made up roughly 80% of Cirrus Logic's revenue in each of the past three fiscal years. Apple was the only prominent smartphone vendor to grow shipments in the second quarter, according to IDC, thanks in large part to the affordably priced iPhone SE.
Those data points are encouraging signs for Cirrus Logic.
In terms of the company's guidance, revenue in the fiscal first quarter is expected to be $200 million to $250 million. The consensus estimate is right in the middle of that range, at $225.2 million. Gross margin is forecast at 51% to 53%. Analysts are modeling for earnings per share of $0.30.
Apple also suggested that its flagship iPhones would launch "a few weeks later" than normal this year, so investors will also want to hear any commentary from Cirrus Logic management about how that timing could impact guidance for the fiscal second quarter.
Later this month, Cirrus Logic is also scheduled to present at two investor conferences. Execs will discuss the business at the KeyBanc Capital Markets' Future of Technology Series on Aug. 11 as well as the Oppenheimer Annual Technology, Internet and Communications Conference on Aug. 12.