Investors braced for a bumpy ride ahead of Cree's
What analysts say:
- Buy, sell, or hold?: The majority of analysts back Cree as a buy. But with 57.7% of analysts rating it a buy, Cree is still below the mean analyst rating of its nearest 10 competitors, which average 59.7% buys. Analysts don't like Cree as much as competitor ON Semiconductor overall. Thirteen out of 18 analysts rate ON Semiconductor a buy compared to 15 of 26 for Cree. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
- Revenue forecasts: On average, analysts predict $268.8 million in revenue this quarter. That would represent a rise of 0.1% from the year-ago quarter.
- Wall Street earnings expectations: The average analyst estimate is earnings of $0.16 per share. Estimates range from $0.11 to $0.20.
What our community says:
CAPS All-Stars are solidly behind the stock with 94% giving it an "outperform" rating. The community at large agrees with the All-Stars with 92.7% granting it a rating of "outperform." Fools are gung-ho about Cree and haven't been shy with their opinions lately, logging 524 posts in the past 30 days. Despite the majority sentiment in favor of Cree, the stock has a middling CAPS rating of three out of five stars.
Cree's profit has risen year over year by an average of 25.8% over the past five quarters. Revenue has fallen in the past two quarters. The company's gross margin shrank by 11.4 percentage points in the last quarter. Revenue fell 8.2% while cost of sales rose 12.6% to $150.3 million from a year earlier.
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