Cree hits 52-week high after solid 1Q results

Cree shares jump to 52-week high after strong 1st-quarter results, outlook

• On 1:04 pm EDT, Wednesday October 21, 2009

NEW YORK (AP) -- Shares of Cree Inc. jumped to a 52-week high Wednesday after the LED lighting manufacturer posted fiscal first-quarter results well above Wall Street's expectations and gave a strong outlook for the current quarter.

The company said it is benefiting from growing LED adoption and it's in a good position for solid growth in the second quarter.

Lazard Capital Markets analyst Daniel Amir said the quarter's gross 44 percent margins were impressive, but he kept a "Hold" rating on the stock.

"While (second-quarter) guidance was better than most of the Street expected, we recommend that investors wait on the sidelines until we have better visibility on the impact from government funding for efficiency and infrastructure projects," the analyst wrote in a note to investors.

Cree forecast adjusted earnings of 28 cents to 30 cents per share for the current quarter; analysts polled by Thomson Reuters are now expecting 29 cents. On Tuesday, analysts were predicting a profit of 23 cents per share.

Morgan Joseph analyst Ilya Grozovsky said higher LED sales for lighting applications drove sales growth in the quarter, with outdoor municipal lighting an important segment. Indoor lighting and LED replacement lamps also drove growth, he added.

Shares of the Durham, N.C., rose $4.54, or 11 percent, to $45.70, in early afternoon trading, setting a 52-week high.

Buzz up!