Cree Beats Q2 Views, Offers Strong Outlook

Cree, Inc. CREE gained sharply in Tuesday's extended session after it posted quarterly results and an outlook above expectations.

The chip maker said its operating margin was higher than expected in the recent second quarter because of improved results from its light-emitting diode business.

Chief Executive Charles M. Swoboda said the LED market is "still in the early stages" and the company's outlook in the segment is strong.

Cree forecast third-quarter adjusted income of between $0.21 and $0.25 a share, on revenue of $395 million to $415 million.

Wall Street expects third-quarter income of $0.21 a share, on revenue of $404.4 million.

In the recent period, Cree posted net income of $12.2 million, or $0.10 a share, down 66 percent from $35.7 million, or $0.29 a share a year earlier.

Revenue was nearly flat at $413.2 million, compared with year-earlier revenue of $415.1 million.

Adjusted income for the recent period equaled $0.33 a share, versus $0.46 a share last year.

Wall Street expected adjusted income for the second period of $0.22 a share, on revenue of $412.12 million.

Cree changed hands recently up more than 5 percent at $34.