Do Cree, Inc. (NASDAQ:CREE) shareholders have a reason to be concerned? The LED lighting company’s shares fell nearly 10% today, after forecasting adjusted earnings from continuing operations of 4 cents to 10 cents a share, while analysts were looking for 16 cents a share. In addition, the company reported adjusted fiscal first-quarter earnings of 15 cents a share on revenue of $321.3 million, compared to consensus estimates of 13 cents a share on revenue of $364.8 million.
“We delivered solid results in fiscal Q1, as Lighting, LED Products and Wolfspeed all achieved revenue and gross margins that were in line with our targets,” stated Chuck Swoboda, Cree Chairman and CEO. “We continue to make progress with our transition to a more focused LED lighting company and building a more valuable business by bringing better light to our customers.”
On the ratings front, Cree has been the subject of a number of recent research reports. In a report released today, Stephens analyst Harsh Kumar downgraded CREE to Hold. Separately, yesterday, Oppenheimer’s Colin Rusch assigned a Hold rating to the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Harsh Kumar and Colin Rusch have a total average return of 15.0% and 7.3% respectively. Kumar has a success rate of 70% and is ranked #646 out of 4180 analysts, while Rusch has a success rate of 45% and is ranked #565.
The street is mostly Neutral on CREE stock. Out of 8 analysts who cover the stock, 6 suggest a Hold rating , one suggests a Sell and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $21.50, which reflects a potential downside of -15% from last closing price.
Cree, Inc. operates as innovator of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. It operates through the following segments: LED Products, Lighting Products, Power and RF Products segments. The LED Products segment includes LED chips, LED components and SiC materials. The Lighting Products segment consists of LED lighting systems and bulbs for the commercial, industrial and consumer markets. The Power and RF Products segment includes power devices and RF devices.