Shares of Cirrus Logic Inc. soared Tuesday after the semiconductor maker raised its fiscal third-quarter sales outlook citing stronger-than-expected demand for the audio products its chips are used in.
The company also gave a better-than-expected outlook for the fiscal fourth quarter, which ends in March.
For the October-December period, Cirrus said it expects sales of $65 million, up 49 percent from the same period a year earlier. Its earlier outlook was for sales of $58 million to $62 million.
Analysts, on average, had been expecting revenue of $60.8 million, according to a poll by Thomson Reuters.
For the current quarter, Cirrus expects sales above $53 million. Analysts had been predicting $49 million.
Jefferies analyst Adam Benjamin raised his price target on the stock to $7 from $6 but kept his rating at "hold." He said in a note to clients he believes the company's revenue from portable audio products was slightly better than expected thanks to its "strong position" at Apple Inc. Cirrus makes components for the iMac, the iPhone 3G and all of the iPods, he noted.
The analyst added his research indicates Cirrus is "designed into" the upcoming Apple tablet, "with production on track to begin in the March/April timeframe."
Shares of the company based in Austin, Texas jumped $1.34, or 20 percent, to close at $7.96. Earlier, the stock hit a 52-week high of $8.13.
