Cree Falls After Earnings

Shares of Cree, Inc.

are lower on the session after the LED company reported its Q3 earnings results. The company reported net income of $9.5 million or $0.08 per share, compared to $18.9 million or $0.17 per share, in the year ago period. On an adjusted basis, the company reported net income of $0.20 per share compared to $0.27 per share in last year's corresponding quarter. This missed analysts' consensus EPS estimates of $0.21. Revenues for the quarter were up 30 percent to $284.8 million, which also missed analysts' estimates of $300.76 million. Gross margins for the quarter dropped to 34.9 percent versus 41.7 percent in last year's third quarter. Overall operating margins were 1.8 percent compared to 9 percent last year. Looking ahead, CREE sees adjusted EPS between $0.20 and $0.26 for the fourth quarter. This compares to analysts' consensus EPS estimates of $0.28 for Q4. Revenues for the fourth quarter are expected to be between $295 million and $315 million. This is below analysts' current consensus estimates of $323.61 million. Late in Wednesday's trading session, CREE shares were trading down 6.52% to $29.82.