Post-Earnings Analysis - Cree

LONDON, November 10, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Cree Inc. (NASDAQ: CREE). On October 21, 2014, the company reported its financial results for Q1 FY15 (period ended September 28, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Cree Inc. During Q1 FY15, Cree Inc.'s revenue increased 9% on a Y-o-Y basis. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q1 FY15, Cree Inc. reported revenue of $427.67 million compared to $391.00 million in the same period last year. The company's revenue during the reported quarter came marginally below Bloomberg analysts' forecast of $428.00 million. On a GAAP basis, the company's operating income decreased to $11.46 million in Q1 FY15 from $36.79 million in the prior-year quarter. Further, Cree Inc.'s GAAP net income narrowed to $11.13 million, or $0.09 per diluted share, in Q1 FY15, from $30.50 million, or $0.25 per diluted share, in the same quarter last year. Analysts from Bloomberg had expected the company to report GAAP net income of $23.10 million, or $0.19 per diluted share in Q1 FY15. The free research on CREE can be downloaded as in PDF format at:

www.Investor-Edge.com/CREEFreeReport

On a non-GAAP basis, the company's gross margin for Q1 FY15 decreased to 32.4% from 39.2% in the year-ago quarter. Further, non-GAAP operating income narrowed to $35.23 million from $58.66 million in Q1 FY14. Non-GAAP net income for Q1 FY15 was $29.55 million, or $0.24 per diluted share, compared to non-GAAP net income of $47.33 million, or $0.39 per diluted share, in the corresponding quarter last year.

Commenting on the results, Chuck Swoboda, Cree Inc.'s Chairman and CEO, stated that the company has good momentum in its Lighting and Power & Radio Frequency (RF) segments, although its fiscal Q1 results were below its targeted levels due primarily to lower than expected LED demand. He further said that while the LED industry conditions are challenging, the company is confident that innovation is still the key to leading the market and driving growth in all of Cree's businesses. Given the company's technology leadership, new product pipeline and strong balance sheet, Cree Inc. remains uniquely positioned to capitalize as the industry transitions to LED lighting, Mr. Swoboda added. Sign up and read the free analyst's notes on CREE at:

www.Investor-Edge.com/CREE-10112014

In its guidance for Q2 FY15, the company targets revenue in the range of $400 million to $420 million with GAAP gross margin of 32.6%+/- and non-GAAP gross margin of 33.5%+/-. Further, the company anticipates GAAP net income in the range of $6 million to $10 million, or $0.05 to $0.09 per diluted share. Non-GAAP net income is targeted in the range of $24 million to $29 million, or $0.20 to $0.24 per diluted share.

Stock Performance 

On the day following the earnings release, October 22, 2014, Cree Inc.'s stock witnessed a sharp decline of 17.71%, and ended the session at $27.28. On the last close, Friday, November 07, 2014; it finished at $32.62, 0.40% above its previous day's closing price, after vacillating between $32.20 and $32.95. A total of 2.40 million shares were traded, which was below its three months average volume of 2.73 million shares. Over the previous three trading sessions, the company's shares have gained 1.02%. However, the stock has lost 0.24% over the last one month and 47.82% from the beginning of 2014. Shares in Cree Inc. closed below their 50-day and 200-day moving averages of $36.88 and $48.45, respectively. Furthermore, the stock traded at a PE ratio of 37.45 and has a Relative Strength Index (RSI) of 46.13. Visit Investor-Edge and access the latest research on CREE at:

www.Investor-Edge.com/CREEEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 3 insider transactions by 2 individuals within the company. On October 22, 2014, John B. Replogle and Robert A. Ingram, Directors at Cree Inc, bought 733 and 962 of the company's shares, respectively, at a price of $27.27 per share. On the following day, October 23, 2014, Mr. Replogle purchased 5,000 more shares of the company at a price of $27.75 per share. Complimentary in-depth research on CREE is available at:

www.Investor-Edge.com/CREEInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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