Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Shares Crater on Cree Earnings Report

Shares of Durham, N.C.-based Cree (NASDAQ: CREE  ) were cratering this morning, in the wake of an earnings announcement last night that showed the company growing its revenues 19% in fiscal 2013, nearly doubling its net income to $87 million for the year, hitting its earnings target, yet producing guidance that fell short of expectations for both earnings and revenues.

For fiscal Q4, Cree reported earning $0.23 per diluted share on $375 million in total revenue, a 22% increase over last year's Q4 revenues, and a 156% increase in diluted earnings per share. Pro forma profits of $0.38 per share matched analyst expectations for the quarter.

Cree's real problem -- and the reason the stock was off 20% in early Wednesday trading -- is guidance. The maker of energy-efficient lighting predicted that in fiscal Q1 2014, it will collect revenues of between $380 million and $400 million. At the midpoint, that is short of the $399 million that analysts are expecting. Cree also promised to earn pro forma profits of between $0.36 and $0.41 per share in Q1 -- even further short of analyst expectations of $0.43.

Investors have flocked to Cree's stock this year in the expectation that more companies and households will replace old fluorescent and incandescent lights with LED bulbs. Since the start of the year, the stock had soared 123% through the close of regular trading Tuesday.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2594959, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:59:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
CREE $24.97 Down -0.07 -0.28%
Cree CAPS Rating: ****