NEW YORK (TheStreet) -- Overnight, Apple (AAPL) shares saw an inevitable pullback once lofty expectations were not exceeded. As shortsellers turn bearish on the stock, these suppliers of vital modules to the Apple portfolio took a dive in morning trading.
The biggest decliner? Cirrus Logic (CRUS), slated to report after the bell, derives a large chunk of revenue from its contracts with Apple -- at least 80% of total sales, according to Oppenheimer analyst Rich Schufer. The circuitmaker supplies audio amplifiers and codec (components designed to encode data stream) to many Apple products, though lost out on an audio amplifier socket in the iPad Air to Maxim Integrated Products (MXIM). By mid-morning, Cirrus shares have taken off 4.9% to $18.66.
Apple, which reported after market close Monday, beat earnings estimates, with first-quarter net income of $14.50 a share exceeding Thomson Reuters' expectations by 43 cents. However, the sale of 51 million iPhone units over its first quarter ended December fell short of Wall Street expectations of at least 56 million units sold.
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. The team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: AAPL Ratings Report