Shares of Cirrus Logic climbed more than 19 percent Thursday after the company released better-than-expected quarterly earnings and a strong business outlook.
The audio company reported fiscal first-quarter earnings of 44 cents per share on revenue of $259.4 million, beating analysts' projections for 25 cents per share on revenue of $236.4 million, according to Thomson Reuters consensus estimates. The results were down from the same period a year earlier when it posted profit of 54 cents a share on revenue of $282.6 million.
Cirrus Logic said it believes the introduction of its new products will drive strong growth throughout fiscal 2017. Analysts at Canaccord Genuity raised their price target from $52 to $56, attributing the company's growth to its share expansion within the Android ecosystem as well as content gains with top customers.
"We believe adoption of premium audio features (such as those seen in the iPhone) is set to accelerate as Android OEMs look to differentiate," according to a report from Canaccord Genuity.
The company's revenue guidance for the fiscal second quarter ranged between $380 million and $410 million.
Shares of Cirrus Logic have climbed more than 68 percent this year.