Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of LED specialist Cree (NASDAQ:CREE) lit up today with gains as high as 17%, tapping fresh 52-week highs in the process, after the company introduced a new series of LED bulbs while raising guidance.
So what: Cree calls its new LED bulbs "game-changing" since they will retail at competitive price points that can tempt consumers to switch to LEDs. The new bulbs generate energy savings of 84% relative to traditional bulbs. A 40-watt replacement will start at just under $10, which Cree says will quickly pay for itself in energy savings.
Now what: Backing up this optimism, Cree raised guidance for its fiscal third quarter and now expects revenue to be in the range of $335 million to $350 million. That's higher than the previous revenue guidance range of $325 million to $345 million that the company provided in January. Operating expenses are also predicted to come in higher than before because of increased R&D spending and marketing. Non-GAAP net income per share should be $0.31 to $0.36, a penny higher on both high and low ends relative to prior outlook.
Interested in more info on Cree? Add it to your watchlist by clicking here.
Fool contributor Evan Niu, CFA, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.