Cree, Inc. Third Quarter Earnings Sneak Peek

Cree, Inc. (NASDAQ:CREE) will unveil its latest earnings on Tuesday, April 17, 2012. Cree develops and manufactures semiconductor materials and devices mainly based on silicon carbide, gallium nitride, and related compounds.

Cree, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 13 cents per share, a decline of 31.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 22 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 14 cents during the last month. For the year, analysts are projecting profit of 67 cents per share, a decline of 52.1% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 2 cents, coming in at net income of 15 cents per share against a mean estimate of profit of 18 cents. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $300.8 million in revenue this quarter, a rise of 37.2% from the year-ago quarter. Analysts are forecasting total revenue of $1.2 billion for the year, a rise of 21.5% from last year’s revenue of $987.6 million.

Analyst Ratings: Analysts are optimistic about this stock, with 17 analysts rating it as a buy, two rating it as a sell and five rating it as a hold.

A Look Back: In the second quarter, profit fell 75.7% to $12.1 million (10 cents a share) from $49.8 million (45 cents a share) the year earlier, missing analyst expectations. Revenue rose 18.3% to $304.1 million from $257 million.

Key Stats:

The company has reported a profit for the last eight quarters, but income has fallen year-over-year by an average of 68.5% over the past four quarters. The quarter hit the hardest was the first quarter, which saw a 77.9% drop.

The company has seen increasing revenue for two quarters in a row. In the first quarter, the figure rose 0.2%.

Stock Price Performance: Between January 17, 2012 and April 12, 2012, the stock price rose $9.21 (39.5%), from $23.33 to $32.54. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 12, 2012, when shares rose for seven straight days, increasing 9.8% (+$2.13) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 14.6% (-$3.47) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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