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Cree, Inc. (NASDAQ:CREE) is scheduled to report its Q4 2012 results on August 7, 2012, after the bell. The street expects EPS and revenue of $0.23 and $306.31M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CREE and the news from its closest competitors.

Cree, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last three quarters. In the last quarter it reported $0.20 EPS, just failing to meet analyst estimates of $0.21.

Cree, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.23 based on 33 analysts' estimates, down from $0.28 a year ago. Revenue estimates are $306.31M, up from $243.03M a year ago. The median target price by analysts for the stock is $35.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 9, 2012, Stifel Nicolaus initiated Buy rating for the company.

Latest News

  • On June 26, 2012, Cree, Inc. and SemiLEDs said they have agreed to end the parties' patent infringement litigation. As part of the settlement, SemiLEDs agreed to the entry of an injunction effective October 1, 2012 that prohibits the importation and sale of the SemiLEDs accused products in the United States and has made a one-time payment to Cree for past damages.
  • On May 22, 2012, Cree, Inc. announced that John Kurtzweil has resigned as Executive Vice President-finance and Chief Financial Officer(NASDAQ:CFO), effective May 21, 2012, to pursue other opportunities, and that Michael McDevitt has been appointed CFO on an interim basis.
  • On April 17, 2012, Cree, Inc. announced that for fourth quarter of 2012, it expects revenue to be in the range of $295 million-$315 million, GAAP net income to be in the range of $5 million-$12 million, or $0.04 to $0.10 per diluted share.

Competitors

Aixtron (NASDAQ:AIXG), SemiLEDs Corporation (NASDAQ:LEDS), Universal Display (NASDAQ:PANL), Rubicon Technology (NASDAQ:RBCN), and Veeco Instruments (NASDAQ:VECO) are considered major competitors for Cree and the table below provides the key metrics for these companies and the industry.

Cree, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CREE Chart

CREE data by YCharts

Competitors' Latest Development

  • On July 26, 2012, Veeco Instruments, Inc. announced that for the third quarter 2012, it expects revenue to be between $120-$140 million, earnings per share (EPS) to be between $0.12 to $0.29 on a GAAP basis, and $0.22 to $0.38 on a non-GAAP basis.
  • On July 24, 2012, Universal Display Corporation and FUJIFILM Corporation announced that FUJIFILM Holdings Corp. has sold and Universal Display has purchased the entire worldwide patent portfolio of more than 1,200 OLED patents and patent applications of Fujifilm for $105 million.
  • On July 19, 2012, Universal Display Corporation and Plextronics, Inc., is in the development and manufacture of printed electronics technologies, announced they have entered into a strategic alliance to accelerate the development and commercialization of solution-based OLED material systems incorporating Plextronics' hole injection and hole transport materials with Universal Display's phosphorescent OLED emissive layer materials.
  • On June 26, 2012, Cree, Inc. and SemiLEDs said they have agreed to end the parties' patent infringement litigation. As part of the settlement, SemiLEDs agreed to the entry of an injunction effective October 1, 2012 that prohibits the importation and sale of the SemiLEDs' accused products in the United States and has made a one-time payment to Cree for past damages.
  • On May 9, 2012, Universal Display Corporation announced that the Company continues to see the Company's revenues for fiscal 2012 as being in the range of $90 million to $100 million.
  • On May 8, 2012, Rubicon Technology, Inc. announced that for the second quarter of 2012, it expects revenue of between $15-$18 million and loss of $0.10-$0.14 per share .
  • On May 1, 2012, Rubicon Technology, Inc. announced that for the first quarter of 2012, it expects revenue of approximately $10 million, in line with its guidance of $8 to $12 million and a loss of between $0.10 and $0.14 per share .
  • On April 30, 2012, Veeco Instruments, Inc. announced that for the second quarter 2012, it expects revenue to be between $120 million and $145 million and earnings per share to be between $0.20 to $0.40 on a GAAP basis, and $0.29 to $0.48 on a non-GAAP basis.
  • On April 5, 2012, Semileds Corp announced that for third quarter of 2012, it expects revenue in a range of $7.9 million to $8.9 million with GAAP net loss attributable to SemiLEDs stockholders of $7.5 million to $7.0 million, or a loss of $0.27 to $0.25 per diluted share, based on an estimated 27.5 million diluted weighted average shares.
  • On February 23, 2012, Rubicon Technology, Inc. announced that for first quarter of 2012, it expects total revenue to be in the range of $8-$12 million and a loss of between $0.10 and $0.14 per share .
  • On February 9, 2012, Rubicon Technology, Inc. announced that it has entered into a new contract with its customer for large-diameter sapphire wafers. The amount of the contract is $20 million, and it represents a baseline level of shipments that will be made from June through December 2012.
  • On February 7, 2012, Veeco Instruments, Inc. announced that for fiscal 2012, it expects revenue to be between $500 million -$600 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $612 million for fiscal 2012.
  • On February 6, 2012, Veeco Instruments, Inc. announced that for first quarter of 2012, it expects revenue to be in the range of $115 million and $140 million. Earnings per share are expected to be between $0.04 to $0.25 on a GAAP basis, and $0.13 to $0.34 on a non-GAAP basis.

Technical Overview


The stock has a market capitalization of $2.81B and is currently trading at $24.16 with a 52 week range of $20.25 - $33.45. The stock's year-to-date performance has been 9.62%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Cree