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Tuesday, Sep 10
Cree rallies on new LED bulb launch, Sterne Agee note
- Cree (CREE +4.8%) asserts its new TrueWhite Series LED bulb offer an unmatched color rendering index score of 93. A 60W-replacement bulb will sell for a relatively steep $19.97. (PR)
- Meanwhile, Sterne Agee says Cree is set to sell a 3rd-gen A19 LED bulb through Home Depot that will have superior gross margins (reportedly in the mid-20s) than the current A19 bulb.
- Cree shares were crushed last month after the company provided light FQ1 guidance to go with mixed FQ4 results, and reported its FQ4 lighting products gross margin fell 550 bps Q/Q in FQ4 to 25.1% thanks to the launch of cheaper LED bulbs such as the A19.