LED lighting market leader Cree, Inc. (NASDAQ: CREE) released its fiscal Q4 earnings results on Tuesday after the closing bell. The stock had shed 6 percent after hours and was trading at $25.82 after falling 2 percent and closing the regular market session at $27.48.
Cree reported top-line sales growth of 2 percent to $388 million from $382 million in the year-ago-period. This came in slightly ahead of analysts' consensus revenue estimates for the fourth quarter of $385.83 million and was in-line with the high estimate on the Street of $388.41 million. Despite the better-than-expected results, however, growth remains anemic at the company.
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Nevertheless, on a consecutive quarter basis, sales climbed 6 percent at Cree versus the third quarter. Adjusted net income in the period was $19 million, or $0.19 per share, compared to a net loss of $21 million or $0.19 per share, in last year's fourth quarter. On a GAAP basis, which is not comparable to analysts' consensus EPS estimates, Cree reported a loss of $11 million or $0.11 per share, narrower than the $88 million or $0.83 per share loss the company reported last year.
The $0.19 per share in income that Cree reported on a non-GAAP basis missed Wall Street consensus earnings per share estimates of $0.20 by a penny. For the fiscal year, sales at the LED-maker were $1.62 billion, which was a 1 percent decline versus last year. Although Cree reported a net loss of $22 million on a GAAP basis, net income for the fiscal year on a non-GAAP basis was $88 million or $0.86 per share.
"Fiscal 2016 was a year of progress towards our goal to build a more focused and valuable LED lighting technology company," stated Chuck Swoboda, Chairman and CEO. "We successfully restructured the LED business, improved commercial lighting fundamentals, refocused our consumer business on premium LED bulbs, and unlocked significant value with the agreement to sell Wolfspeed."
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