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What: LED maker Cree
So what: Fourth fiscal quarter non-GAAP EPS of $0.28 fell 49% year over year but beat the $0.27 consensus estimate. GAAP EPS of $0.18 fell from $0.48 in the year-ago quarter. Revenue of $243 million fell 8% year over year.
Now what: Cree's CEO said that over the last year, the company has managed a "challenging business cycle" for its LED component and chip products and grown its LED lighting business. Looking ahead, he stated that "demand has improved from earlier in the calendar year." Guidance for the current quarter calls for revenue of $245 million to $255 million and non-GAAP EPS of $0.25 to $0.28. Cantor Fitzgerald said Cree's margins likely troughed last quarter and recommended investors "aggressively accumulate shares at the current depressed valuation to take advantage of a multi-year secular growth trend in solid state lighting."
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not 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.