Cree Craters on Earnings Miss (CREE)

Shares of Cree Inc.

are cratering in the after-hours trade after the company misses EPS and revenue estimates. Shares are currently off by 13.57%, trading at $54.20. Cree reported Q2 EPS of $0.55 on revenues of $257 million; this compares to the Street estimates of $0.58 per share on revenues of $276.6 million. The company also issued downside guidance for Q3. "Q2 results reflected continued growth in our LED lighting product line, but revenue and earnings were lower than our targets due primarily to lower sales to our LED component distributors in Asia," stated Chuck Swoboda, Cree chairman and CEO. "We are managing through an inventory correction in Asia in the near term, but the opportunity in LED lighting has not changed. Quarterly revenue increased 29% year-over-year and based on the market trends we are seeing, and the success of our own LED lighting business, we are more confident that we will see continued adoption of LED lighting over the next several years," he added. Cree, Inc. develops and manufactures semiconductor materials and devices primarily based on silicon carbide, gallium nitride and related compounds. It focuses its expertise in SiC and GaN on light emitting diode products. It also develops power and radio frequency products.