Cree 1Q profit up, but outlook disappoints

Cree 1Q profit up 89 percent, but profit outlook for current quarter is short of Street view

Associated Press

NEWS: Cree Inc., which makes LED lights, said its fiscal first-quarter net income rose 89 percent. But a weak forecast drove down shares in aftermarket trading.

DETAILS: The company said sales of lighting products rose and its gross margins — the percentage of each dollar in revenue the company actually keeps as profit — improved.

NUMBERS: Net income came to $30.5 million, or 25 cents per share, in the quarter that ended in September. That compares with net income of $16.1 million, or 14 cents per share, in the same months a year ago. Excluding one-time items, net income was 39 cents per share, matching analysts' expectations, according to FactSet. Revenue rose 24 percent to $391 million. Analysts expected $392.1 million.

FUTURE: The company forecast second-quarter profit, excluding one-time items, of 36 cents to 41 cents per share on revenue of $400 million to $420 million. Analysts predicted earnings of 44 cents per share on revenue of $413.8 million for the quarter that ends in December.

STOCK: Shares fell $10.51, or 14 percent, to $63.81 in aftermarket trading, after closing up 92 cents Tuesday at $74.32. The stock has more than doubled this year.

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