Shares of Xperi Holding (NASDAQ:XPER) spiked Tuesday after the company reported better-than-expected third-quarter results yesterday.
The tech stock's share price jump by as much as 27.4% during today's trading and had gained 23.5% as of 1:54 p.m. EST.
Xperi Holding reported third-quarter revenue of $202.8 million, which represented a 250% year-over-year increase, and surpassed Wall Street's consensus revenue estimate by about 9%. Additionally, the company's adjusted diluted earnings per share of $0.19 outpaced some analysts' estimates of $0.12 per share for the quarter.
Xperi's CEO Jon Kirchner said in a press release, "We made significant progress on various strategic initiatives during the quarter and delivered financial results in line with our original second half expectations."
Investors were clearly happy with the company's third-quarter results as well, but even with today's massive share price spike, Xperi's stock is still down 7.9% year to date.
Xperi's management is optimistic about the rest of the company's financial year and raised Xperi's revenue guidance for the second half of the year to $635 million, compared to the previous guidance of $400 million, both at the midpoint. Investors should remember that Xperi's stock has been very volatile this year, with huge price swings being fairly commonplace. Today's share price jump shows that some Xperi investors are prone to making big investing decisions on just one quarter of performance. Investors may want to be careful when thinking about investing in this company.