Cree stock falls after revenue miss, weak guidance
Cree Inc. shares fell more than 6% in the extended session Wednesday after the company delivered revenue below consensus estimates but beat earnings expectations. The company reported fiscal third-quarter net losses of $227.9 million, or 22 cents a share, compared with losses of $240.6 million, or 10 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation, and amortization, among other things, adjusted earnings from continuing operations were 20 cents a share, compared with 17 cents a share in the year-ago quarter. Revenue rose to $274.1 million from $225.2 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings from continuing operations of 16 cents a share on revenue of $289.2 million. For the fiscal fourth quarter, analysts model adjusted earnings from continuing operations of 20 cents a share and revenue of $306 million. Cree said it expected fiscal fourth-quarter losses from continuing operations of 18 cents to 23 cents a share and sales of $263 million to $271 million. Cree stock has gained 66% this year, with the S&P 500 index rising 11%.
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