Sterne Agee Analysts Weigh In On Cree Earnings
Andrew Huang and John Shen, analysts at Sterne Agee, weighed in on Cree (NASDAQ: CREE) after the company reported worse than expected fourth quarter results.
The company reported fourth quarter EPS of $0.38, in line, on revenue of $375.0 million vs. $377.21 million expected but guidance was weak as the company sees Q1 EPS and revenue below street estimates.
"June quarter results reflect strengthening demand and improving margins for components, offset by weaker-than-expected revenue and margins for lighting," said the analyst team on buy rated Cree (PT $72). "We believe lighting gross margins were weaker than expected due to a faster-than-expected ramp of lower-margin LED bulbs at Home Depot."
"Cree reported gross margins that were above expectations for LED products, but below expectations for the lighting products. LED products gross margin was 45.7% vs. our expectations of 44.3%. Lighting products gross margin was 25.1% vs. our expectations of 31.6%."
Cree shares fell 15.77% after hours to $63.75 per share, the lowest since June.
Latest Ratings for CREE
|Dec 2016||JMP Securities||Initiates Coverage On||Market Outperform|
|Oct 2016||Stephens & Co.||Downgrades||Overweight||Equal-Weight|
|Sep 2016||Williams Capital||Initiates Coverage on||Buy|
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