Smartphone tech specialist Cirrus Logic (NASDAQ:CRUS) outpaced a booming market last month as shares gained 10% compared to a 5.5% rally in the S&P 500 in July, according to data provided by S&P Global Market Intelligence.
The rally wasn't enough to put the stock back in positive territory for the year, and shares remain lower by more than 10% compared to a 3% boost in the broader market.
Investors pushed the stock higher after seeing strong sales results from Apple (NASDAQ:AAPL), which has accounted for about 80% of Cirrus Logic's revenue in recent years. The smartphone giant said in late July that strong demand for iPhones helped push sales higher by 11% in the quarter that ended on June 27, so it appeared Cirrus Logic's growth might be accelerating.
The chipmaker's actual results, released on Aug. 3, showed solid demand trends but didn't shock investors. Gross profit margin and sales gains landed roughly where management had predicted they would, and executives forecast another solid quarter ahead.
But Cirrus Logic's second-half operating metrics will depend on a few factors outside of its control, including Apple's iPhone release schedule and the broader economic environment.