SemiLEDs Earnings: Here’s Why Investors are Not Happy Now

SemiLEDs Corporation (NASDAQ:LEDS) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 10.49%.

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SemiLEDs Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.19 in the quarter versus EPS of $-0.22 in the year-earlier quarter.

Revenue: Decreased 39.32% to $4.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SemiLEDs Corporation reported adjusted EPS loss of $0.19 per share. By that measure, the company beat the mean analyst estimate of $-0.24. It missed the average revenue estimate of $5.36 million.

Quoting Management: “Demand has improved; however, the pricing environment for the general lighting market remains challenging,” said Trung Doan, Chairman, President and CEO. “I believe we are on the right track and this is a turning point for SemiLEDs. From an execution standpoint, we need to focus on profitable markets and control cost,” concluded Doan.

Key Stats (on next page)…

Revenue decreased 22.95% from $6.23 million in the previous quarter. EPS increased to $-0.19 in the quarter versus EPS of $-0.31 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 loss of $0.22 to a loss $0.23. For the current year, the average estimate has moved down from a loss of $0.93 to a loss of $0.95 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]