Cree Earnings: Snaps Cold Streak with Profit Growth

Cree Inc. (NASDAQ:CREE) reported net income above Wall Street’s expectations for the first quarter. Cree develops and manufactures semiconductor materials and devices mainly based on silicon carbide, gallium nitride, and related compounds.

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Cree Inc. Earnings Cheat Sheet

Results: Net income for Cree Inc. rose to $16.1 million (14 cents per share) vs. $12.8 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 25.8% from the year-earlier quarter.

Revenue: Rose 17.4% to $315.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cree Inc. beat the mean analyst estimate of 13 cents per share. It beat the average revenue estimate of $300.8 million.

Quoting Management: “We started the year strong in our fiscal first quarter with record revenue and non-GAAP earnings per share at the high end of our target range,” stated Chuck Swoboda, Cree Chairman and CEO. “Overall company backlog is stronger than it was at this point last quarter, although visibility is still limited and the macroeconomic environment remains a headwind. Our results are beginning to demonstrate the enormous leverage we have in our fully integrated vertical lighting model.”

Key Stats:

The company reported a profit increase last quarter, breaking a four-quarter stretch of year-over-year profit losses. In the fourth quarter of the last fiscal year, net income fell 49.4% from the year earlier, while the figure fell 49.7% in the third quarter of the last fiscal year, 75.7% in the second quarter of the last fiscal year and 77.9% in the first quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 26.2% to $306.8 million in the fourth quarter of the last fiscal year. The figure rose 29.9% in the third quarter of the last fiscal year from the year earlier and climbed 18.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 15 cents versus a mean estimate of net income of 13 cents per share.

Looking Forward: The average estimate for the second quarter is steady at 21 cents a share. The average estimate hasn’t changed from 58 cents per share for the fiscal year.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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