Cree’s earnings were $0.60 EPS versus Thomson Reuters expectations of $0.58 EPS; revenues $268.4 million, shy of the Thomson Reuters data showing estimates of about $278 million. Revenues were up 59% year over year but that came to only 1.5% sequential growth.
For the following quarter, guidance was put at $0.56 to $0.60 EPS on $270 to $280 million in revenues. Thomson Reuters had estimates of $0.59 EPS and about $296 million in revenues.
The company noted, “Although total revenue was on the low end of our target range of $270-280 million due to a decline in LED chips, LED lighting adoption continues to gain momentum and the growth drivers for the company remain on track.”
LED lighting is probably still a hot market for new companies that get in on it. That doesn’t mean that some of the established players won’t get burned on the way.
Cree closed down 4.6% at $53.00 in active trading, and shares are indicated down around $49.00 in the after-hours session as a response. The 52-week range is $40.01 to $83.38.
JON C. OGG
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