Simply put, Apple Inc. (NASDAQ:AAPL) has lost its wheels this year. The stock’s almost 24% down and something or the other is always present to compound its misery. With so many spotlights on it, every piece of news is magnified a hundred times and unfortunately, the positives have been hard to come by. It all started when the company disappointed the Street in January, and since then, there’s been no looking up.
In this post, we’ll take a look at two of them, and see why you should keep your eyes fixed on these reports.
What Cupertino gives, it takes back
Cirrus Logic, Inc. (NASDAQ:CRUS) is not flirting with the clouds anymore. The stock has lost 35% so far this year and was buried deep into the ground last week after releasing preliminary results. The preliminary report wasn’t too bad, as Cirrus Logic, Inc. (NASDAQ:CRUS) reported revenue of $206.9 million, which translates into a fantastic jump of 87% from last year.
However, the Street had set the bar higher at $210.2 million, and the company’s commentary about its margins and inventory reserve didn’t help either. A likely delay by Apple Inc. (NASDAQ:AAPL) in the production of its next gen devices is probably the reason why Cirrus Logic, Inc. (NASDAQ:CRUS) had to record an inventory reserve. Its gross margin should also be around 40%, way below Cirrus Logic, Inc. (NASDAQ:CRUS)’s erstwhile guidance of 50%-52%.
Cirrus Logic, Inc. (NASDAQ:CRUS) is the closest proxy of Apple Inc. (NASDAQ:AAPL), as the company derives around 90% of its revenue from the smartphone behemoth, and as such, a delay in production of iDevices seems to be hurting it big time. But, it seems like a temporary blip, as Cirrus Logic, Inc. (NASDAQ:CRUS) expects margins to return to normal levels in the ongoing quarter. The September quarter is usually the most prolific one for the Apple Inc. (NASDAQ:AAPL) supply chain and the company should put up a solid performance in the latter half of the year.
