Cree Earnings: Investors Happy, Shares Jump
Cree Inc. (NASDAQ:CREE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of Cree. Shares are up 14.40%.
Cree Inc. Earnings Cheat Sheet
Results: Net income increased 205.46% to $36.9 million (32 cents per diluted share) in the quarter versus a net gain of $12.08 million in the year-earlier quarter.
Revenue: Rose 13.87% to $346.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cree Inc. reported adjusted net income of 32 cents per share. By that measure, the company beat the mean analyst estimate of $0.3. It beat the average revenue estimate of $331.2 million.
Quoting Management: “Fiscal Q2 was another strong quarter with record revenue and earnings per share that were higher than our target range due to stronger sales in both LEDs and Lighting combined with improved gross margins,” stated Chuck Swoboda, Cree Chairman and CEO…
…Overall company backlog is in line with seasonal trends for our fiscal Q3. Longer term, we remain focused on driving adoption through innovation, and with our broad understanding of the technology levers from materials through systems, we see opportunities to move the market even faster than what has been experienced to date.”
Revenue increased 9.68% from $315.75 million in the previous quarter. Net income increased 128.91% from $16.12 million in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.22 to a profit of $1.2 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)