What: Shares of Cypress Semiconductor Corporation (CY +0.00%) rose as much as 10% Thursday morning after the company reaffirmed its previous guidance and share repurchase program.
So what: If you'll recall, Cypress initially offered that guidance along with its third-quarter 2015 results in October, calling for Q4 revenue of $430 million to $460 million, gross margin of 41%, and diluted earnings per share of $0.11 to $0.15. Analysts, for their part, were expecting the same, with consensus estimates for both revenue and earnings sitting at the midpoints of Cypress' now-confirmed ranges.
Cypress also confirmed its $450 million share repurchase program, which replaced a previous $400 million authorization approved in Sept. 2011, under which it bought back $327 million. It added that it will open its trading window at the beginning of market on Friday, Jan. 22, 2016.
Now what: That's not terribly surprising considering Cypress stock has already fallen 15% through the first three weeks of January, thanks primarily to the broader market's steep pullback. But it has also fallen more than 40% over the past year as it strives to continue making the most of a softening semiconductor market, while at the same time working to realize synergies following its merger with Spansion last year.
As it stands, it appears today's guidance confirmation and the impending start of Cypress latest share repurchase efforts are a big vote of confidence from management and an indication the company is still making progress toward both goals.
